In early October, she sued her father for hundreds of millions of dollars in damages, now her brother also takes her to court: Belinda Stronach, ex-chief of the Canadian-Austrian automotive supplier Magna, is at the center of a bitter as well as escalating family quarrel.
The news agency Bloomberg reports that Andrew Stronach filed a lawsuit against his sister Belinda and her „confidants“ in Toronto on November 1st. According to the lawsuit, Andrew has lost faith in his sister and wants her to withdraw from the family business Stronach Group.
Among other things, the lawsuit accuses Belinda Stronach and her confidants of having made overpriced investments. They should have brought the family business Stronach Group into a liquidity crisis.
The fierce dispute over power and control in one of the richest families in Canada, about which manager-magazin.de already reported, is thus richer by an ugly turn. Belinda’s father, Magna founder and billionaire Frank Stronach, had only five years ago transferred control of his company to his Stronach Group. At that time daredevil billionaire Stronach, who wanted to take over the German carmaker Opel a good decade ago, made a trip to politics: In his native Austria, Stronach senior founded a party in 2012, which disbanded in 2017 again.
In order to avoid conflicts of interest in his political ambitions, in 2013 he transferred control of the Stronach Group to his daughter Belinda and confidants such as Alon Ossip, a former Magna top manager. The Stronach Group is home to several foundations and companies that comprise much of the assets generated by Stronach senior.
„Complete collapse of confidence“
Andrew Stronach, who is primarily engaged in agricultural activities according to the lawsuit, owns 23 percent of the Stronach Group through his own foundation. In the lawsuit, Andrew Stronach accuses his 52-year-old sister and her confidants of having made „carefree and expensive investments“ that have led to greater losses. Therefore, the Stronach Group is now in a liquidity crisis again and „actively trying to sell valuable real estate and other assets.“ According to the lawsuit, Andrew Stronach has repeatedly attempted to maintain „ordinary balance sheets“ and income statements for the Stronach Group – but was ignored or suspended in the lawsuit.
According to the lawsuit, his sister’s behavior has „led to a complete collapse of trust“ between Andrew Stronach, Belinda, his parents, and Belinda’s confidants. „Therefore, Andrew now lacks the confidence that his sister and her confidants will perform their duties and duties According to the lawsuit, the Stronach Group can fulfill „properly or at all,“ which is why Andrew is calling on his sister to withdraw from the Stronach Group.
Her brother’s complaint was „an extension of my father’s legal action against me and my children,“ Belinda Stronach said in a statement. The allegations are untrue, she wants to respond formally and in a timely manner. „It saddens me very much that we have reached this critical time in our family,“ said Bloomberg in the statement. A spokesman for Alan Ossip called the allegations completely insubstantial. Provided the financial information required by Andrew Stronach.
In the lawsuit filed a month ago, Frank Stronach had charged his daughter with mismanagement and demanded $ 520 million (€ 345 million) in damages from her daughter. According to Stronach Senior, his daughter is said to have diverted $ 70 million from the Stronach Group for her extravagant lifestyle. Also documents should have been forged. Belinda Stronach also rejected these allegations as false at the time.