Carrie O'Connell 1:05 p.m., June 28
Platinum Equity cooked books, says lawsuit
Former U-T owner got $88 million for collapsing firm, say plaintiffs
Beverly Hills-based Platinum Equity, a private equity firm that formerly owned the U-T, is being sued for phony accounting it allegedly employed to pump up earnings of an allegedly dying company it was selling. The suit was filed in Philadelphia by investors who bought SDI, Inc. from Platinum.
According to the suit, Platinum inflated earnings and cash flow of the allegedly moribund company through improper accounting and failing to pay suppliers and taxes in Philadelphia, New York City and Ohio. Platinum says the suit is "utterly baseless."
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