News

Investment bank sues ATM Network, Cardtronics over busted deal

Green, Holcomb & Fisher said it was defrauded of payment for a year's worth of work in arranging a sale of ATM Network to Seven Bank.

January 6, 2015

Minneapolis-based Investment bank Green, Holcomb & Fisher is suing Cardtronics Inc. and Phillip Rock, former CEO of ATM Network Inc., alleging that the two defrauded GHF of payment for a year's worth of work setting up a deal for the sale of ATM Network.

According to the Minneapolis Business Journal, the lawsuit alleges that Rock hired GHF to find a buyer for his Minnetonka, Minnesota-based company and verbally agreed to a brokered agreement to sell to Seven Bank, owner of 7-Eleven convenience stores in the U.S.

The suit says Rock backed out of the deal and used confidential information obtained in that negotiation in order to sell his company to Cardtronics in August 2012 for a larger, undisclosed sum. Rock is said to have divulged Seven Bank's plan to buy ATM Network and make it the sole provider of ATM services to 7-Eleven stores, discontinuing its business relationship with Cardtronics.

The Financial Industry Regulatory Association, an independent securities regulator, in November awarded GHF $1.2 million in the dispute. The firm is seeking in excess of that amount in its suit against Rock and Cardtronics.

Neither respondent has commented on the suit, the Business Journal said.