Business is booming.

Sued Texas developer lays off nearly 90 workers

StoryBuilt has been behind a number of developments along Austin’s trendy South First Street. The company employed around 250 people at its peak and the number of people it now employs is unknown. The Real Deal reported that Capstar claims that StoryBuilt lured it to invest by offering preferred returns and profit distributions to be paid quarterly. CapStar claims to have invested some $500,000 in 100 Class A multifamily units in May 2018 – an agreement honored until the fourth quarter the following year before its investment stopped being repaid, the outlet reported.

Lawsuits start pouring in

An earlier lawsuit was filed on Jan. 18 from Eastline Condominium Community Inc., the Real Deal reported. Eastline manages an Austin condominium complex where 28 units were found to have water damage. The company seeks more than $1 million in damages, interest, attorney fees and court costs.

Another investor, Joseph Thweatt – owner of Class A shares in StoryBuilt – reportedly sued the company’s co-founders for breach of contract and fraud related to a March 2022 settlement. The investor now is seeking residual payment and accrued investment interest, profits and attorney fees as reported by Real Deal.

Thweatt is said to have made a $75,000 investment in 2018 upon buying 15 Class A units. According to the report, Thweatt alleges he has yet to receive the redemption payment he was owed.

In the wake of lawsuits, co-founder Ryan Diepenbrock stepped down from his day-to-day duties while Chad Shepler resigned from his role as COO and board director, according to media reports.

Source link

Comments are closed, but trackbacks and pingbacks are open.