Bain Capital had a third party bankrupt a Samsonite factory in France to duck more than $75M in tax
Bain Capital Ducked French Law to Make $1.6 Billion, Class Claims
BOSTON (CN) - Bain Capital had a third party bankrupt a Samsonite factory in France to duck more than $75 million in legally required training and relocation fees to the 200 worker who lost their jobs, a class action claims in Federal Court.
Bain and its associates walked away with $1.6 billion, while the laid-off workers got nothing, according to the complaint.
Lead plaintiff Murielle Abdallah sued Bain Capital LLC in Federal Court. She claims Bain's scheme was not revealed until 2011, after a criminal case against the hthird-party businessman in France.
Bain, founded by presidential candidate Mitt Romney, is the only defendant in the complaint. Neither Romney nor Samsonite are defendants.
Abdallah says she worked at Samsonite's Henin-Beaumont Factory.
"In 2003, Bain Capital LLC (hereafter 'Bain') was the main and active participant of an investors' pool, also consisting of Ares Management and Ontario Teacher
Pension Funds," the complaint states. "The pool purchased approximately eighty-five percent (85%) of Samsonite's outstanding shares, through a recapitalization agreement for a total price of a hundred and six million dollars ($106,000,000). The market price of one share was, then, once cent ($0.01).
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