MakeOffices Founder Reaches Settlement With MRP, Ron Paul To End Legal Battle
The heated legal battle between the founder of D.C.-based co-working provider MakeOffices and the investors who ousted him has come to an end.
MakeOffices founder Raymond Rahbar has reached a confidential settlement with the investors, MRP Realty and EagleBank CEO Ron Paul, the Washington Business Journal reports.
Entities tied to MRP and Paul had invested millions of dollars in the co-working company, which Rahbar founded in Rosslyn in 2011 and now has 13 locations in three markets. The investors voted to remove Rahbar in August 2016 and replace him with MRP's Zach Wade. A Fairfax County judge in April allowed the leadership shake-up to go through.
The investors sued Rahbar in January 2017, seeking millions of dollars and alleging he misappropriated company funds. Rahbar then filed a countersuit alleging the investors conspired to take control of the company from him. Both parties denied the claims.
Rahbar's claims, including one that Paul unfairly used his position at EagleBank, were included in a December report from anonymous short-seller Aurelius Value, which sent the bank's stock tumbling. EagleBank denied the allegations included in the report, and it's stock has since bounced back close to its previous level.
