“Dana Transport Says Banks Pushed It Into $500M Default”
Excerpts from the story posted by Kat Greene on Law360 on October 8, 2015.
“Dana never missed a loan payment and didn’t engage in mass layoffs,” lead attorney Brian Mahany told Law360 on Thursday. “This is the case of opportunistic lenders trying to balance their books on the backs of the business community.”
“The owner of Dana Transport Inc. accused PNC Bank, Wells Fargo & Co. and others of costing him more than $500 million with a scheme that thrust the trucking company into default on a loan even though it was current on payments, according to a racketeering suit filed in New York on Thursday.
“Ron Dana, the ‘rags to riches’ millionaire who started one of the nation’s biggest transportation companies when he was 18 years old, said lenders worked in tandem with consultants and other companies to force Dana Transport into default on a debt facility it was still making payments on, costing millions and putting the business in jeopardy, according to Thursday’s complaint.”
“The suit said Dana Transport Dana never missed a loan payment and didn’t engage in mass layoffs… This is the case of opportunistic lenders trying to balance their books on the backs of the business community.”
“More insidious, the 2007-2010 period was the ideal time for trucking companies to expand and acquire more equipment, personnel and facilities. That door was closed to Ron because no one would extend credit to someone allegedly in default,” Mahany said. “The lost opportunity costs are beyond imagination.”
Mahany Law and Lawsuits Against Banks
Mahany Law attorneys Chris Katers and Brian Mahany serve as lead counsel in the above case. The case is now pending in the Superior Court of New Jersey.
To learn more about our practice against banks and lending institutions, visit our sister Lender Liability Lawyer website. We consider cases where people and businesses have lost $5 million or more. We also entertain class actions on behalf of consumers who have lost money because of dishonest banking practices. We are also interested in speaking bank employees who are considering blowing the whistle on their employer.
Attorney Brian Mahany can be reached online or by email . All inquiries kept strictly confidential.
Law360 has featured Attorney Brian or his cases many times. Visit Law360’s website for more information.