Investors Claim They Were Sold a Factory Terrorized by Drug Cartel
Investors Claim They Were Sold a Factory Terrorized by Drug Cartel
LOS ANGELES (CN) - Thermo Fisher Scientific sold a Mexican manufacturing plant to investors without telling them a Mexican drug cartel had taken over the factory in Reynosa, a private equity firm claims in court.
OpenGate Capital Group and three RoundRock entities sued Thermo Fisher in Federal Court.
They claim they paid more than $40 million in October 2012 for Thermo Fisher's Lab Workstation Business, a lab furniture maker, whose most profitable facility is in border city of Reynosa, Mexico.
OpenGate claims that within hours of taking over the plant, it discovered that the place was controlled by the Gulf Cartel.
"Thermo Fisher acted in bad faith to induce plaintiffs to purchase its Lab Workstation Business in October 2012, by, among other things, fraudulently concealing critical information related to the safety, security, viability and operation of the business, including the fact that its primary manufacturing facility has been overrun by a reputably violent and hostile Mexican drug cartel," the complaint states.
http://www.courthousenews.com/2013/05/14/57609.htm
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