In 2019, The Binns who previously owned XpresSpa filed what has been described as a “frivolous and vindictive” derivative lawsuit against Bruce Bernstein of Rockmore Capital, Richard Abbe of Iroquois Capital, as well as their investment partner Brian Daly, owner of B3D, LLC.
The Binns were terminated by XpresSpa for numerous improprieties. It is believed by many within the company that the lawsuit was filed out of malice and to undermine the reputation of the secured lender and certain board members.
On July 13, 2020, Magistrate Judge Sarah Cave issued a Report and Recommendation to Judge Woods advising that the complaint be dismissed in its entirety due to the circumstances. The report was 76 pages long and laid out a three-pronged explanation for the dismissal claiming that the case was an attempt to retaliate against being removed from the company.
Magistrate Judge Cave wrote, “the Binns have an outsized personal interest in this litigation,” and that they “illustrate[d] potential vindictiveness towards the Defendants.”
The case was decidedly thrown out with Prejudice by Judge Woods, which is a major legal admonishment against the claim.
We reached out to Xpresspa’s public relations department and were directed to their press release addressing the matter on August 11th.
We contacted Richard Abbe, former director of Xpresspa who stated that “the company should sue The Binns for legal fees and time wasted on such frivolous lawsuits against them.”