On Thursday, a lawsuit was filed by Alpha Media Group with the Manhattan Supreme Court against media tycoon Calvin Darden Sr and his company Darden Media Group over the botched $31 million sale of its subsidiary, Maxim magazine.
The New York Post said that the Cerebus Capital Management-controlled Alpha Media claimed that the elder Darden failed to make good on the acquisition deal. Cerebus Capital is one of the most biggest private equity firms in the US. Darden Sr currently serves on the boards of the biggest companies in the US, mainly Target, Coca-Cola and Cardinal Health, The Post said.
The newspaper said Alpha Media is seeking $38 million for damages, purportedly resulting from the deal that was allegedly bungled by his son, 39-year-old Calvin Darden Jr.
The younger Darden reportedly duped investors in an elaborate scheme to fund his lavish lifestyle. According to US prosecutors, Darden Jr has milked investors a total of $8 million, who thought that the money would go into the acquisition of the US magazine.
Alpha Media's lawsuit brought a new twist to the story already lain bare through the investigation launched on Darden Jr. The Post said Alpha Media claimed that Maxim had met with both Dardens about the acquisition deal. The suit also said that Darden Sr had signed on as guarantor for the deal, and that a letter reportedly written by Merrill Lynch financial adviser Roderick Jones had vouched the elder Darden's ability to pay for the acquisition deal. It is interesting to note that earlier on, it was widely believed that Darden Jr impersonated his father to scam people and companies out of their money for personal interests.
When The Post contacted Jones to confirm whether he wrote the letter in question, Jones said, "I can't recall."
The newspaper tried contacting Darden Sr about Alpha Media's lawsuit, but the media mogul could not be reached.
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