The Pullman Group, best known in the asset-backed securities market for structuring and selling the famous privately placed "Bowie bonds," along with a cadre of other entertainment royalty securitizations, recently filed a lawsuit against Prudential Insurance, Prudential Investments, Prudential Securities, CAK/Universal Credit Corp., UCC Lending Corp. and entertainment accounting firm Rascoff/Zysblatt Organization Inc., for a number of claims totaling over $2 billion.
Reportedly, the aforementioned parties were all involved in a celebrity bond financing joint venture created by Pullman when Prudential Insurance and others pulled out, reneging on the contract and starting their own venture - this time without Pullman.
"In bringing this lawsuit, we intend to send a message that the people who devise innovative and creative new ways to securitize assets will not have the fruits of their efforts snatched from them without a fight," said Pullman in a prepared statement.
The claims include breach of contract, breach of fiduciary duty, misappropriation of trade secrets, conversion, unjust enrichment, promissory estoppel, breach of duty to negotiate in good faith, misrepresentation and permanent injunctive relief.
"It's not really a suit that involves us," said Robert D'Loren, president of CAK Universal. "He's really suing Prudential Insurance."
"The funny thing about it all is, we're not in the same business. It's almost comical. We really deal with sort of quasi-corporate deals where we work with controlled rights. And he's in the non-controlled rights business. I don't even understand the lawsuit. It's mind-blowing," he added.
A source at Prudential said, "The whole thing is ridiculous." He also predicted that the lawsuit will go nowhere.
The complaint was filed late last week in the Supreme Court of New York.