Stronach dispute moves ahead with defence and counterclaim
A recent online story outlines the latest development in the Stronach family dispute. Belinda Stronach has responded to the claim commenced against her and several other parties by Frank Stronach and his wife, Elfriede Stronach. The claim was commenced in the fall of 2018, and sought over $500 million from Belinda and others. Frank, the founder of Magna International Inc., alleged mismanagement of the family’s assets.
Additionally, Frank’s former business partner Alon Ossip, along with Belinda, were accused of appropriating funds for their own personal benefit. Belinda was accused of utilizing these funds to maintain an extravagant lifestyle. After the claim was commenced, Belinda stated that she will respond accordingly.
Counterclaim alleges Frank Stronach decreased the family’s net worth by $800 million
In her statement of defence and counterclaim, Belinda alleges that her father has lost large amounts of money on various business projects over the years. Some of these projects include a Florida farming operation and golf resort. Allegedly, the farming operation racked up losses of over US$100 million. Other pet projects included two giant Pegasus statues for a horse-racing track. The initial cost of US$6 million for these statues apparently ballooned to over US$55 million. Additionally, Belinda is claiming she is owed $33 million from Frank for funds that she gave him to get involved in politics in Austria and to pay taxes owing in that country.
Mr. Ossip also filed a statement of defence in which he claimed that Frank’s refusal to “let go of his failing business ventures has become financially disastrous”. As a result, the various defendants are claiming that Frank’s “unsound business decisions” have decreased the family’s net worth by $800 million. Furthermore, the plaintiffs now have an opportunity to file a reply and a defence to counterclaim.
None of the allegations have been proven in Court. The parties in this dispute have vast resources for a long and protracted legal battle. Consequently, it is likely that this dispute will drag on for several years. In conclusion, it would be prudent for the parties involved to attempt to resolve this matter through private mediation.
This will be an interesting story to follow.
More on this story here.