John C. Erickson, the founder and former CEO of Erickson Retirement Communities, filed a motion in early August to dismiss a $100 million lawsuit against him regarding his part in the business’s bankruptcy, reports the Baltimore Business Journal.
Erickson is accused of illegally transferring millions of dollars from the Catonsville-based business, which he claims was legal under Mayland law. He also claims that the retirement community’s bankruptcy was due to the poor housing market, rather than his deliberately attempting to liquidate the company.
The lawsuit, filed in early June, essentially claims Erickson used his company as a cash machine for his own benefit, leading to the company’s downfall, says the Baltimore Business Journal. Erickson, along with more than two dozen others, were named in the suit by the trustees who handled the company’s bankruptcy case.
Erickson Retirement was sold to Redwood Capital Investments LLC in April 2010 for $365 million, after seeking bankruptcy protection the previous October. No longer in bankruptcy, it is now known as Erickson Living.
Read the Baltimore Business Journal article.
Written by Alyssa Gerace