Ten months later, many of these dealerships were sold to New Jersey residents, and a new cliché was born: WOOHOOO! —Walid “Wally” Darwish begins and ends his own Wally’s Auto Group TV ad with this, promising “fun” and “great deals.”
Remember the commercial?
I had forgotten about them until Darwish's name appeared in a decision handed down last month by the New York Intermediate Court of Appeals. Here's how it happened.
Darwish, who has a background in automotive sales and management, will acquire 10 Fuccillo Automotive Group dealerships in upstate New York in April 2022, including local stores in Schenectady, Latham, East Greenbush and Amsterdam. did. He told trade publication Automotive News that they began seeking a deal in 2020, but negotiations were halted by the coronavirus lockdown, his own battle with the virus, and Fuccillo's subsequent death. Ta.
Funding for the purchase came from an investment group affiliated with Miami's Potamkin Automotive Group, with $46.5 million going to a company buying the dealership's real estate and $15.5 million going to another company buying the dealership itself, according to court records. lent me. On its website, Potamkin describes itself as one of the nation's largest auto dealership groups, with operations across the country, including New York.
The loan sparked a lawsuit that followed soon after, with Darwish being sued in state court in Albany County by two management groups he had formed to run the dealership. He then filed a counterclaim against Potamkin executives.
The lawsuit alleges that as part of the fundraising effort, the management group's bylaws were amended, putting Darwish, Mark Manzo and Barry Frieder in charge, despite the latter two being the top executives. , was accused of continuing to operate the company as if Darwish were its largest shareholder. Potamkin's executive.
The management group alleged that Darwish unilaterally blocked access to dealer accounts held by TD Bank. He countersued, accusing Potamkin of plotting to oust him and take over his auto business.
A related lawsuit filed last summer by Volkswagen of America in state court in Westchester County, where Mr. Darwish does business, was moved to Albany County and consolidated with the lawsuit against Volkswagen there. The lawsuit, which shares some parties with the financing lawsuit, disputes whether the reorganized management group or Darwish alone is authorized to operate a VW dealership in Schenectady.
A year ago, Judge Richard Platkin of Albany County State Supreme Court denied Mr. Darwish's request to dismiss the business group's lawsuit against him, a decision that later followed the The case was appealed to the Court of Appeals.
That court last month affirmed Platkin's decision to allow the case to proceed. I'm sure this result didn't make anyone say, “Oh!” From Darwish.
