1847 Holdings Provides Update Regarding Development in Pending Civil Lawsuit
Rhea-AI Summary
1847 Holdings (OTCID: LBRA) announced a favorable procedural development in a pending civil lawsuit, Case No. 1:25-cv-08606-LAK.
On October 28, 2025 the U.S. District Court for the Southern District of New York entered an Order (D.E. 35) dismissing the plaintiff’s First Amended Complaint (D.E. 34) without prejudice and gave the plaintiff until November 24, 2025 to file an amended complaint no longer than 40 pages. The Court criticized the prior filing as excessively long (85 pages, 314 paragraphs) and inconsistent with Rule 8(a) pleading standards.
Company counsel said they are pleased with the Order and remain confident in defending the case if the plaintiff refiles.
Positive
- Court dismissed First Amended Complaint on Oct 28, 2025 (D.E. 35)
- Refiling constrained to 40 pages and due by Nov 24, 2025
Negative
- Plaintiff may refile, so litigation remains ongoing through at least Nov 24, 2025
- Original allegations include RICO and fraud claims that could be reasserted if amended
News Market Reaction
On the day this news was published, LBRA declined 5.26%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, NY, Oct. 31, 2025 (GLOBE NEWSWIRE) -- 1847 Holdings LLC ("1847" or the "Company") (OTCID: LBRA), a holding company specializing in identifying overlooked, deep-value investment opportunities in middle market businesses, today announced a significant favorable development in a pending civil lawsuit, Case No. #1:25-cv-08606-LAK, filed in the United States District Court for the Southern District of New York by Plaintiff Matthew Miller.
On October 28, 2025, the Court entered an Order [D.E. 35], sua sponte, dismissing Plaintiff’s First Amended Complaint [D.E. 34], without prejudice to Plaintiff filing an amended complaint, no more than 40 pages long, on or before November 24, 2025. The First Amended Complaint, which had been filed four days before the Court’s issuance of its dismissal Order, alleged violations of 18 U.S.C. 1962(c) (RICO), 1862 U.S.C. 1962(d) (RICO), Common Law Fraud, Fraudulent Conveyance, and Aiding and Abetting Fraud in connection with an investment made by Plaintiff in a July 2023 private placement and trading thereafter.
The Court’s decision found that “[t]he first amended complaint in this civil RICO case covers 85 pages (exclusive of exhibits) and contains 314 numbered paragraphs. It is discursive and contains legal argument and case citations that in ordinary circumstances have no proper place in a complaint. It is not the ‘short and plain statement of the claim showing that the pleader is entitled to relief’ that Rule 8(a) requires.”
“We are pleased with the Court’s October 28 Order,” said Oliver Griffin of Griffin Partners LLP, Counsel of Record for the Company. "Our firm remains confident in our ability to vigorously defend this lawsuit if the Plaintiff re-files and if he re-files we look forward to the adjudication of this matter via the judicial process, consistent with the facts and the law of the case.”
About 1847 Holdings LLC
1847 Holdings LLC (OTCID: LBRA), a diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders. For more information, visit www.1847holdings.com.
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Forward-Looking Statements
This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com
FAQ
What did the October 28, 2025 court order in Case No. 1:25-cv-08606-LAK mean for LBRA?
Can the plaintiff refile the lawsuit against LBRA after the October 28, 2025 dismissal?
What allegations were included in the dismissed complaint against LBRA?
How did the court describe the plaintiff’s First Amended Complaint in the Oct 28 order?
What is the deadline and page limit for any amended complaint against LBRA?
