LOS ANGELES (CelebrityAccess) — Danny Wimmer Presents has sued a former investment partner, alleging that the law firm illegally concealed funds in order to avoid paying a court-ordered judgment to the tune of $1 million.
In the suit, filed on August 7th in Los Angeles Superior Court, Wimmer alleges that the law firm Davis Shapiro Lewit Grabel Leven Granderson & Blake transferred substantial sums of money into personal accounts in order to appear financially insolvent and unable to make good on the judgment.
The judgment stems from a 2015 lawsuit over an early investment by the law firm into Danny Wimmer Presents.
In 2010, as Wimmer was preparing to launch his first festival, “Welcome To Rockville” he says he consulted with Danny Hayes, who is now CEO at DWP, but was then a managing director at the law firm Davis Shapiro for business and legal advice.
Through the relationship, Wimmer solicited an investment to help get DWP off the ground and in exchange promised a 7.5% split from their first festival, Welcome to Rockville.
However, the relationship soured and Davis Shapiro requested a return of their investment, which Wimmer claims he provided, along with a check for the profits from the festival and received a written confirmation that the business relationship had been resolved.
Fast forward to 2015, Wimmer filed a lawsuit against Davis Shapiro, alleging that the law firm was harassing DWP employees over claims that the law firm retained a %14.3 ownership stake in the company from its initial investment.
In 2017, L.A. Superior Court Judge Elizabeth White ruled in favor of DWP, noting that the initial investment and profit share had been repaid and noting that Davis Shapiro’s renewed interest in DWP came after a significant investment in the promoter by the Auburn United Indian Council and she handed down a fee award and reimbursement for costs totalling $1.19m.
An attorney for Davis Shapiro did not respond to a request for comment.