HIG Capital, a private equity firm, has sued its rival Audax Group for misleading it about the financial strength of a telecom-software firm it had acquired in a 2022 deal, according to a report by Bloomberg.
Citing sources familiar with the matter, the report said that HIG believed it had been mislead qua the $915m deal in a “brazen, massive, systemic fraud” relating to the sale of Mobileum, claiming that on Audax instruction managers artificially inflated the telecom firm’s revenue numbers by making up phony client invoices from a sham company, according to legal filings.
Audax has termed these accusations meaningless, according to the report.
