Last year, EMM Group’s Mark Birnbaum was hit with a sexual-harassment lawsuit, then Abe & Arthur’s got saddled with wage-violation claims. Now, the suit du jour comes from an investor who’s claiming the group misappropriated funds intended for Abe & Arthur’s into their newest project, Catch. Eater has it that former real estate agent Gregory Struck invested a million bucks in Abe & Arthur’s in exchange for thirteen shares in EMM, but found that his checks began to trickle off around the time the group opened Catch.
Struck is claiming he was never repaid the $300,000 remaining balance on his investment and that he was unfairly thrown out of the company (EMM Group claims Struck violated his investment agreement). Whew, our head is spinning. If EMM winds up having to shell out, we sure hope their upcoming “bakery” on the Bowery proves lucrative.