A lawsuit filed on Thursday, August 24, in Dallas County by way of a bunch of buyers named Hunter Pond, Lou Olerio of Olerio Homes, and Vandelay Hospitality Group as defendants. It alleged damaged verbal exchange, a misplaced funding of $1.8 million, and claims of negligent misrepresentation and failure of fiduciary responsibility. The plaintiffs have been in search of a $2 million agreement, simply over what the lot claimed to have invested in increasing Lucky’s Hot Chicken around the Metroplex.
The crew withdrew its swimsuit on Friday, September 1, which legal professionals on either side informed Eater Dallas would come as the results of an amicable answer. They didn’t elaborate on what the agreement or negotiations entailed. The submitting was once disregarded with out prejudice, which permits the plaintiffs to refile the similar declare at some point in the event that they make a choice. But the lawsuit make clear what the instant long term of Lucky’s holds and what would possibly have long gone unsuitable with this extensively publicized growth.
Following the outlet of 2 Lucky’s Hot Chicken places below the Vandelay umbrella, one on Gaston Avenue — which is the only final Lucky’s — and one this is now closed close to SMU, the swimsuit alleged that Pond and Olerio sought out of doors investments to enlarge. The pair aimed to open 4 extra places in Richardson, Arlington, Pleasant Grove, and Oak Lawn Avenue, plans which have been widely shared within the media. The plaintiffs asserted that they have been informed the places have been already secured with rentals in position, all in former eating places that will require little or no in start-up prices and make certain fast openings, which was once a large a part of why this funding was once sexy. Pond and Vandelay would organize the places. The Richardson location was once allegedly owned by way of Oliero.
The buyers accrued $1.8 million, which is what Pond and Olerio got down to carry, and the pair have been to take a position $200,000 of their very own cash as smartly, as stipulated by way of the funding settlement. But the buyers alleged that as quickly because the defendants had the cash below their keep watch over, communications and updates turned into rare. The lawsuit asserted that “Olerio, a convicted felon home builder who Defendant Pond unilaterally put ‘in charge’ of supposedly getting the restaurants open … was not fond of being questioned by investors and routinely would swear and berate them when questions were asked and information sought … Most of the Plaintiffs’ requests for information were either ignored or met with falsehoods, hostility and deflection from Defendant Olerio.”
The legal referenced is Oliero’s guilty plea in a federal court case from 2013 for which he was once convicted of “money laundering stemming from his role in a hydroponic marijuana growing operation,” consistent with the U.S. Attorney’s Office, Northern District of Texas.
The swimsuit alleged that by way of September 2022, and with out the data of the buyers, no significant building had begun on any of the places. In the interim, Vadelay and Pond opened Brentwood, expanded Hudson House with an opening in Los Angeles, a second D.L. Mack’s, and introduced the opening of Anchor Bar.
When Lucky’s on Oak Lawn did open in February 2023, it closed after four months. According to the lawsuit, its buyers most effective realized of the closure after riding by way of the site.
The 3 different places by no means opened and the plaintiffs claimed that Pond, Oliero, and Vandelay had now not accounted for the funding cash.
Pond emailed the buyers in May 2023, the swimsuit stated, to just accept duty for the failure of the Lucky’s growth, bringing up a “hot chicken market downturn, inflation, underfunding, construction costs, and unforeseen delays in the permitting process” as the explanations for the failure. The buyers asserted they weren’t given any documentation to end up any of Pond’s claims and that they weren’t alerted at any level about issues, precise or possible.
In the interim, the buyers allege that the little accounting they did obtain in regards to the finances published that it was once going to different initiatives by way of the defendants. According to the submitting, the buyers declare that 1000’s of greenbacks in their cash have been utilized by Olerio to reinforce his belongings in Richardson “for his personal benefit.”
With the swimsuit put to mattress, Dallas stays with one Lucky’s and it appears no plans to open different places any time quickly.
A consultant for Vandelay Hospitality confident Eater Dallas that the remainder Lucky’s location will proceed on.
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