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Meal delivery company sued by investment fund over alleged fraud

On Behalf of | Apr 4, 2023 | Investment Loss

An investment fund has filed a lawsuit accusing top executives in a New York-based meal delivery company of fraud, InsuranceNewsNet reports.

The suit was filed by Indiana-based investment fund Real Bridge LLC against Real Eats CEO Dan Wise and his former chief financial officer Rebecca Holderread. The firm claims that RealEats was attempting to raise millions of dollars in funding from investors amid what was purported to be the company’s growth. Instead the company was in dire financial straits and was on the verge of shutting down, the lawsuit said.

Real Eats was accused of engaging in fraudulent behavior and making numerous false statements to convince Real Bridge and others to invest in the company. Court documents stated that Real Bridge invested $450,000 in RealEats following a presentation in December 2022, and that 18 investors put a total of over $2.5 million into the company from Sept. 2022 to the end of the year. Wise and Holderread allegedly used the money raised from investors to repay outstanding loans and reduce their own personal liability. Real Bridge claimed that RealEats sent updates to investors that painted a “glowing picture” of the company’s financial position as recently as January.

The lawsuit, filed in state Supreme Court of New York’s Ontario County, accuses Wise and Holderread of fraud, breach of fiduciary duty, and unjust enrichment. The plaintiff seeks damages along with attorney fees and “further relief as may be just and proper.”

RealEats shut down its operations March 1 after a senior secured lender pulled money from the company’s bank account. The company produced and shipped fully cooked meals to customers.

The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. We bring a unique level of knowledge and experience when representing the rights of investors, including resolving cases through arbitration and litigation when necessary. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a no-cost evaluation of your matter.