By Corina Vanek | Phoenix Business Journal
A former business partner is suing Red Development LLC managing partners Scott Rehorn and Michael Ebert, alleging the two men have used the Phoenix company’s name improperly while completing projects that only benefit Rehorn and Ebert, rather than all of the firm’s equity partners.
Dan Lowe, a co-founder and former managing partner at Red, left the company in 2012 but remained a minority owner of the business, according to the lawsuit filed in Dallas County court in Texas. The suit alleges Lowe had an agreement with Ebert and Rehorn that required Lowe to continue to receive documentation, financial information and distributions from Red, and be treated the same as the other owners.
(Subscriber content)
