Central Investments LP Triumphs in Fraud Trial with $17M Verdict
Deal News | May 21, 2025 | Withers
In a significant legal battle, global law firms Withers and Hayes Boone secured a comprehensive $17 million victory for a limited partnership's limited partners following a lengthy jury trial. Five limited partners of Central Investments LP had accused the partnership’s managing partner, Richard Gregersen, of self-dealing and financial misconduct, which was purportedly concealed from the partners. Withers successfully proved Gregersen's fraudulent use of funds for personal expenses, while neglecting the partnership’s core asset, a Silicon Valley apartment complex. After a December jury verdict of $9.7 million in damages for the limited partners, Santa Clara County Superior Court Judge Daniel Nishigaya awarded an additional $7.36 million in derivative damages to the partnership, releasing Gregersen’s control and ensuring no personal benefit from the award. The decision marks a significant resolution for the affected partners, allowing them to correct years of financial mismanagement and fraud.
Sectors
- Legal Services
- Real Estate
- Financial Services
Geography
- United States – The legal case was tried in the Santa Clara County Superior Court, which is located in California, USA. The article also mentions Silicon Valley, a notable region within the United States.
Industry
- Legal Services – The article discusses a court case involving legal action taken by Withers and Hayes Boone on behalf of limited partners against a managing partner, highlighting the legal services industry's role in litigation and dispute resolution.
- Real Estate – The fraud case centers around the misuse of funds related to a real estate asset—a 173-unit apartment complex in Silicon Valley—making the real estate industry a key element of the dispute.
- Financial Services – The dispute involves allegations of financial fraud and misconduct within a limited partnership, relevant to the financial services sector which oversees and manages such investment structures.
Financials
- $17 million – The total amount awarded in damages, combining jury verdict and judge's order for derivative claims.
- $9.7 million – Amount awarded by the jury for compensatory and punitive damages to the limited partners.
- $7.36 million – Amount awarded by Judge Daniel Nishigaya for derivative damages to the partnership.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Withers LLP | Legal Advisor | Company | Withers is a global law firm that represented the limited partners in the court case. |
| Haynes and Boone, LLP | Legal Advisor | Company | Haynes and Boone, a law firm, collaboratively worked on the case to secure victory for the limited partners. |
| Central Investments LP | Target Company | Company | The limited partnership at the center of the legal dispute. |
| Richard Gregersen | Defendant | Person | The managing partner accused of fraudulent activities against Central Investments LP. |
| Kimberly Pallen | Legal Advisor | Person | Partner at Withers responsible for leading the legal strategy in the case. |
| Dean Nicyper | Legal Advisor | Person | Partner at Withers involved in leading the case. |
| Santa Clara County Superior Court | Judicial Entity | Government | The court where the case was tried and verdict delivered. |