Frank Stronach sues family alleging mismanagement of fortune

Frank Stronach sues family alleging mismanagement of fortune

Frank Stronach sues family alleging mismanagement of fortune

One of Canada’s wealthiest families is in dispute over the management of its huge fortune.

Frank Stronach, founder of the Magna International autoparts business, and his wife Elfriede, have filed a lawsuit alleging that his daughter and two of his grandchildren have mismanaged the family’s multi-million-dollar assets.

The claims have been made in a filing to the Ontario Superior Court and allege that daughter Belinda Stronach, who is chairman and president of international racecourse management firm The Stronach Group, has acted counter to the interests of the family.

A statement from law firms Davies Ward Phillips & Vineberg LLP and Lenczner Slaght Royce Smith Griffin LLP on behalf of Frank and Elfriede Stronach reads:

“Frank and Elfriede Stronach regret having to commence proceedings in the Ontario Superior Court against their daughter Belinda, Alon Ossip and others. They only did so as a last resort, after having made considerable efforts over a period of almost two years to resolve the matters at issue on a consensual basis. The Claim is now pending before the Court. In the circumstances, Frank and Elfriede will have no further comments on this matter at this time.”

Response from Belinda Stronach
Responding to the allegations, which have not been proven in court, Belinda Stronach told CTV News that family business relationships can be challenging:

“My children and I love my father,” she wrote. “However, his allegations are untrue and we will be responding formally to the statement of claim in the normal course of the court process.”

 


More market talk: