Ousted Prime Automotive Group CEO David Rosenberg has settled a long and contentious lawsuit against his former employer, clearing the way for an $880 million sale of its 27 auto dealerships in the Northeast, including six in Maine.
Houston-based Group 1 Automotive closed on its purchase of the dealerships on Wednesday, the same day Prime Automotive signed a settlement agreement with Rosenberg for $30 million, according to media reports and a Group 1 Automotive news release.
Rosenberg’s father, the late Ira Rosenberg, founded the Prime Motor Group dealership chain in Maine, which later became part of Prime Automotive in 2017. David Rosenberg was named chief executive of the expanded company, which is based in Massachusetts.
But Rosenberg soon complained about financial misdeeds he said he uncovered and exercised an option that allowed him to sell the remainder of his shares to the company. Prime Automotive then fired Rosenberg,…