DURHAM, N.C., Nov. 8, 2022 – Attorneys for Greg Lindberg filed a motion to dismiss litigation from the Securities and Exchange Commission (SEC), pointing out that the SEC Complaint “fails to plead with particularity that Lindberg engaged in any fraudulent behavior.”
The Complaint (SEC v. Gregory E. Lindberg, et al, U.S. District Court Case No. 22-cv-715) lacks any detail as to what statements in the relevant transaction documents were allegedly false or misleading, Mr. Lindberg’s attorneys said in the motion.
Further, attorney Allison Mullins of the law firm Mullins, Duncan, Harrell & Russell said in the motion that the SEC failed to allege how Lindberg could have known of any alleged falsity in the transaction documents.
“The Complaint lacks any detail as to what statements in the relevant transaction documents were allegedly false or misleading,” Ms. Mullins stated in the motion, which was filed Oct. 31 in U.S. District Court for the Middle District of North Carolina. “And the Complaint does not allege, much less allege with the requisite particularity, how Lindberg could have known of any alleged falsity.”
Lindberg’s legal team supplied the SEC with millions of pages and documents explaining every transaction that the SEC had questions about.
Mr. Lindberg said he hopes the Court grants the motion and dismisses the case in its entirety.
“I am fighting every day to ensure policyholders can access all of their benefits as soon as possible, and it’s high time for cooler heads to prevail and to do what is right for those policyholders,” Lindberg said of the motion to dismiss. “Policyholders don’t want more litigation. They want the current sale and financing transactions to proceed to close so they can access their funds.”
In fact, Mr. Lindberg said, the largest policy holder opposes the SEC action.
“Our largest policyholder has said clearly that this government action is not helping them,” Mr. Lindberg stated.
In his motion to dismiss, Mr. Lindberg’s attorneys further state: “Even if the Complaint is not dismissed in its entirety, civil monetary penalties and disgorgement are entirely unwarranted here.”
At the end of 2018, Mr. Lindberg’s team was in discussions with another large lender to provide up to $1 billion in financing as part of this lender’s purchase of his North Carolina insurers.
“In December of 2018, however, someone from ‘the NCDOI’ called this lender and told them not to underwrite any loans to us,” Mr. Lindberg said. “The constant stream of false accusations about me and my companies only serve to destroy our access to credit markets. None of this helps policyholders.”
The destruction of Global Growth’s access to capital markets 3.5 years ago by government actions is the number one reason why policyholders have not yet been able to access their funds.