$100M Claim Against Outback Steakhouses

LOS ANGELES (CN) - T-Bird Nevada demands $100 million from Outback Steakhouses, claiming Outback fraudulently induced it to develop more than 50 outlets in California with promises to finance and buy them. T-Bird claims Bain Capital and Catterton Partners conspired in the scheme by "consummating a merger by which OSI was taken private and pursuant to which OSI insiders received a substantial return, knowing that the OSI defendants would not comply with their agreement to roll up the T-Bird California franchise restaurants."

The complaint continues: "Further, defendants refused to maintain the bank loan as promised and allowed it to go into default. As a result of defendants' wrongful conduct, plaintiffs have been damaged in an amount in excess of $100 million. Further, defendants purported to have paid the principal balance of the bank loan and acquired from the bank by assignment the loan agreement and the note, and on Feb. 19, 2009, filed a complaint against T-Bird and T-Bird California franchises, in the Circuit Court for Hillsborough County, Florida. ... In the Florida state court action OSI is pursuing a default and judgment against T-Bird and T-Bird California franchisees, and attempting to force a below market value acquisition of all of the plaintiff T-Bird California franchises."

Most of the 53 plaintiff Outback Steakhouse outlets are in Southern California. T-Bird is represented in Superior Court by Squire Sanders & Dempsey.

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