October 2025 – In a 90-page Report and Recommendation issued on October 6, a federal magistrate judge has recommended that most of the claims in Euclid Turnaround Opportunity Fund LP v. Amerant Equipment Finance move forward.
Podhurst Orseck partners Matthew Weinshall, Dayron Silverio and Peter Prieto represent the plaintiff Euclid Turnaround Opportunity Fund LP. Euclid focuses on turnaround investments in companies experiencing financial distress.
“We are pleased with the court’s thorough and detailed analysis and we are looking forward to moving into the next stage of litigation,” said Matthew Weinshall, Partner at Podhurst Orseck.
Judge Marty Fulgueira Elfenbein found that Euclid plausibly alleged a coordinated scheme among multiple defendants to deprive it of rights relating to a more than $8.9 million loan transaction.
The lawsuit stems from Euclid’s attempt to purchase distressed loans issued by Amerant to Alliance Metals, an aluminum-smelting company in Alabama.
Euclid claims that after it entered into a binding Loan Sale and Assignment Agreement with Amerant in December 2024, the bank reneged, secretly selling the same loans to another buyer, Ecliptica LLC, which was allegedly aligned with Alliance Metals’ owners and investors.
Euclid brought claims for breach of contract, conversion, tortious interference, and civil conspiracy. Judge Fulgueira Elfenbein denied Amerant’s requests to strike punitive damages at this stage, reasoning that the complaint alleged intentional and malicious conduct that, if proven, could justify such damages.
“It is not often a bank faces the possibility of punitive damages. The stakes of the case are higher as a result. We intend to pursue the greatest possible relief to compensate for our client’s loss and prevent this from happening to others,” said Weinshall.
Podhurst Orseck attorneys are seeking substantial damages on behalf of Euclid in excess of $10 million.
Additional reporting on this matter can be found on Law360 and the Daily Business Review.
