Governor candidate Thanedar faces suit over company's sale
Nov. 15, 2017
LANSING, Mich. (AP) — Michigan Democratic gubernatorial candidate Shri Thanedar has been sued and accused of fraud related to the sale of his majority stake in a chemical-testing company he founded in Ann Arbor.
In a lawsuit filed in federal court Tuesday, Avomeen Holdings Inc. alleges Thanedar made fraudulent and misleading representations about the nature and amount of revenues and earnings — which led Avomeen to pay an inflated price.
Thanedar says he "patently" denies every claim and will fight the suit.
According to the lawsuit, Thanedar received about $20 million from the sale and maintains a minority stake through Chemreal — a company created from the transaction.
Thanedar has given his gubernatorial campaign nearly $6 million. He has said he wants to "disrupt" a Democratic primary that includes Gretchen Whitmer and Abdul El-Sayed.