Overview
- In a Texas bankruptcy court filing, First Brands alleges James diverted “hundreds of millions (if not billions)” from the company, including more than $700 million to himself or affiliated entities between 2018 and 2025.
- The suit claims at least $2.3 billion in liabilities stemmed from non‑existent or doctored invoices and that collateral was double‑pledged through special‑purpose vehicles.
- New management details alleged spending that included at least 17 exotic cars, about $3 million in NYC townhouse rent, roughly $500,000 for a private chef, and payments tied to luxury properties and a personal trainer.
- The company seeks to freeze James’s assets; James denies wrongdoing, has signaled plans to challenge the claims, and filed a motion supporting appointment of a court fiduciary to investigate pre‑bankruptcy practices.
- First Brands entered Chapter 11 in September after lenders flagged over $2 billion unaccounted for; an independent board committee is probing off‑balance‑sheet financing as a reported DOJ inquiry and lender exposures to firms like Jefferies, Santander, UBS, and BlackRock add pressure.