First Brands Group sued founder Patrick James for allegedly misappropriating hundreds of millions of dollars from the US automotive supplier which collapsed into bankruptcy in September.
Lawyers for the company — now run by restructuring consultants at Alvarez & Marsal — alleged that James borrowed funds on fraudulent terms, only then to “routinely and regularly” divert cash for himself and his family, according to a Southern District of Texas filing dated Nov. 3. More than $700 million was funneled from First Brands directly to James and his affiliated entities from 2018 to 2025, they claimed.
Source: First Brands Sues Founder for Allegedly Pilfering Firm Funds – Bloomberg