CORPUS CHRISTI, Texas–(BUSINESS WIRE)–A Mexican district court and now court of appeals both have rejected attempts by Germán Larrea Mota Velasco (Larrea), CEO of Grupo Mexico SAB de CV (GMexico) to compel Tucson, Arizona-based Americas Mining Corporation (AMC), a GMexico subsidiary, to answer as co-defendant in the longstanding personal breach of contract lawsuit brought by U.K. investment firm Infund LLP (Infund). Larrea is the controlling shareholder of GMexico and No. 67 on the Forbes 2014 Worlds Billionaires list.
Its understandable why Larrea would make claims that this lawsuit involves others or has already been heard. But a simple of review of court records confirms that Infunds breach of contract claim against Larrea has never been heard in any jurisdiction anywhere.
Infunds suit alleges that Larrea, 60, breached a commercial commission contract when he refused to deliver 65 million Series B, Coupon 5 shares of GMexico securities for which Infund paid $75 million. GMexico public filings from 2006 onward confirm that Larrea retained the disputed shares in his own accounts, which now value more than $2 billion, representing 7 percent of GMexicos outstanding equity and more than the Larrea familys 51 percent controlling stake in the firm. Larrea personally owns 18 percent of GMexico.
Larrea had previously attempted to implicate GMexico in his answer to Infunds breach of contract claim, but the courts also denied that attempt.
We are pleased that once again, the Mexican courts agree that this lawsuit is between only two parties: Infund, on one hand, and Germán Larrea, on the other, said Infund spokesman José Antonio Marván Lizardi (Marvan).
Referring to a prior lawsuit relating to the securities but not involving Infund that was dismissed without prejudice due to standing concerns, Marvan continued, Its understandable why Larrea would make claims that this lawsuit involves others or has already been heard. But a simple of review of court records confirms that Infunds breach of contract claim against Larrea has never been heard in any jurisdiction anywhere.
Global conglomerate GMexico operates railroads and mines throughout the U.S. and Latin America through subsidiaries including AMC, ASARCO LLC, and Southern Copper Corp. Earlier this year, as part of a GMexico initiative to publicly register its operating subsidiaries, AMC filed a registration statement in London with the hopes of an initial public offering. That IPO has since been called off.
Creighton Welch, 713-529-2660