It’s déjà vu with Mark Walter right now.
More than a decade ago, Walter’s business empire—including his investment firm Guggenheim Partners—faced a proposed class-action lawsuit alleging his purchase of the Dodgers was partially paid for using life insurance policyholder funds, and that the use of those funds was not disclosed in regulatory filings. The 105-page lawsuit, filed in February 2014, also accused his companies of obscuring what are known as “affiliated investments,” or deals between companies under common ownership.
The suit was filed by two named plaintiffs who purchased life insurance policies through companies controlled by Walter. One claimed that the insurance company used money she paid into her policy to fund a $35 million loan that was connected to Guggenheim’s purchase of the Dodgers, and that when she requested a refund it was refused.
It was voluntarily dropped the day after it was filed, but not because Walter’s businesses were found to be clean. It was dismissed without prejudice, meaning the plaintiffs retained the right to refile the same claims. Tom Gober, the forensic accountant whose work helped underpin the case, says the outcome was beneficial for the plaintiffs.
