Eddy Groves in strife

Posted by Michael on November 2, 2008, 11:37am, 472 views

Eddy Groves is in more trouble than the early settlers. Not only has the ABC childcare empire collapsed, his love life is tangled as well.

Eddy’s estranged wife has slapped him with a $44.2 million lawsuit.

news.com.au reports Dr Le Neve Groves is suing her husband and co-founder of ABC Learning Centres and two margin lenders for $64.2 million she says she is owed.

Mr Groves, 42, is living on the Gold Coast and is in a relationship with a former ABC employee, Viryan Collins-Rubie, 44, with whom he has shared property interests in the past. In her Supreme Court claim, Dr Groves says that Eddy Groves was “unjustly enriched” at her expense by the sale of millions of her shares in ABC Learning Centres.

Life must have looked good for Eddy 18 months ago when the ABC share price was trading around $8.

I held some of them because I believed the story that childcare was a growth industry and the company was well managed.

Fortunately I got out of the stock without suffering a major loss. Others were not so lucky.

ABC Learning is facing an Australian Securities and Investments Commission probe and a $100 million lawsuit from shareholders is pending.

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