A Mexican district court today has formally rejected the motion by Germán Larrea Mota Velasco (Larrea), CEO of Grupo Mexico SAB de CV (GMexico) to dismiss the longstanding personal breach of contract lawsuit brought by U.K. investment firm Infund LLP (Infund). Larrea is the controlling shareholder of GMexico and No. 67 on the Forbes 2014 Worlds Billionaires list. Todays ruling clears the way for the Infund v. Larrea matter to be fully heard on the merits in the coming months.
Infunds suit alleges that Larrea, 60, breached a commercial commission contract when he refused to deliver 65 million Series B, Coupon 5 shares of GMexico securities for which Infund paid $75 million. GMexico public filings from 2006 onward confirm that Larrea retained the disputed shares in his own accounts, which now value more than $2 billion, representing 7 percent of GMexicos outstanding equity and more than the Larrea familys 51 percent controlling stake in the firm. Larrea personally owns 18 percent of GMexico.