PITTSBURGH — An investment management company is suing Italian companies in Pittsburgh, citing alleged civil conspiracy and fraud.
LCV Capital Management LLC filed a complaint recently in the Court of Common Pleas of Allegheny County against Nuova Argo Finanziaria, DeLoitte & Touche and Compagnia Italiani Energia, alleging the defendants affirmatively misrepresented to plaintiff the true value of Energrid in order to induce plaintiff to purchase the energy company.
The defendants removed the case to Pittsburgh federal court on Dec. 11.
According to the complaint, in November 2016, after a closing a transaction wherein plaintiff purchased defendants' business for total price of €18 million, plaintiff allegedly discovered material representation and fraudulent activity related to the certified financial statements issued by defendants.
Despite raising the issues to defendants, plaintiff claims it was denied of any knowledge and blamed previous and current management for the tissue of lies perpetrated upon LCV.
As a result, plaintiff claims it has lost $15 million just to make up for the net working capital shortfall.
The plaintiff holds defendants responsible for allegedly agreeing to unlawfully and affirmatively misrepresent to plaintiff the true financial condition of Energrid S.P.A, causing legal damage to investors.
The plaintiff requests a trial by jury and seeks judgment for compensatory damages in an amount in excess of $35,000, pre-judgment interest, punitive damages, all counts, and all other relief to which plaintiff is entitled. They are represented by Bruce Stanley and Alicia Smith of Stanley & Schmitt PC in Pittsburgh.