Bankrupt auto parts maker First Brands has filed a lawsuit against its former CEO and founder, Patrick James, accusing him of financial fraud that plunged the company into insolvency. The legal action, filed with the U.S. Bankruptcy Court for the Southern District of Texas, claims James misappropriated vast sums for personal gain.
A representative for James countered the claims, describing them as ‘baseless’ and ‘speculative.’ The spokesperson asserted that James did not have the opportunity to respond prior to the filing and intends to vigorously contest the allegations. James, who recently stepped down as CEO, has pledged to support stakeholders during the restructuring process.
Meanwhile, First Brands’ bankruptcy and allegations…