Nelson v. Wettengel (2023 settlement)

Brian Nelson, NBPRE, and Nelson suing derivatively for Versity Investments filed in Orange County on 20 Oct 2023. The complaint is Exhibit C of the Walk 1055 second amended petition. Allegations.

Suit

Eighteen causes. Named defendants include Wettengel, Muro, Versity Invest (now Crew), Jennifer Welker as former Versity I CFO, Academy West, Book & Ladder, TripSnap, Wettengel Productions, Sunstone Development, Versity REIT, and the four KHCA DSTs (Walk, Vintage, Hayworth, One on 4th). Versity I is a nominal defendant on the derivative counts. A nested 14 Jun 2022 California statement of information names Nelson sole member/manager of Versity Investments.

The complaint alleges Wettengel and Muro excluded Nelson from management, diverted sale proceeds, forged documents, manipulated accounting, used company funds personally, and left Nelson on bridge-loan guarantees. Allegations.

Settlement

Dismissed without prejudice 7 Dec 2023 after a 3 Dec 2023 term sheet (Walk 1055 Exhibit D; also Exhibit A to the later JAMS award). Crew was to buy Nelson’s interests in Versity Investments, NBPRE, and Book & Ladder for $30 million, closing by December 2024, and pay defaulted bridge loans in the interim. The later JAMS award found Crew, Wettengel, and Muro breached that settlement. The unpaid purchase price was not awarded; Paragraph 11j restored status quo ante as of 3 Dec 2023.

The named bridge-lender schedule on that term sheet is not republished here.