Investor and chefs removed from $700,000 lawsuit against Pihakis
The lawsuit was filed in June.
Legal proceedings continue to shift in the aftermath of the Pihakis Restaurant Group collapse. Three key individuals originally named in a $700,000 lawsuit filed by Fox Funding have been officially removed as defendants, according to court documents.
Changes to the Defendant List
Investor Mike Mouron, along with Executive Chef Rita Bernhardt of Salice (formerly Luca Lagotto) and Chef Joshua Gentry of Little Donkey, were dropped from the litigation filed on June 4. The motion, submitted by Fox Funding on August 20, sought their dismissal without prejudice, meaning the door remains open for these parties to be included in future legal action if necessary.
This adjustment leaves Nick Pihakis as a primary defendant, alongside various limited liability corporations tied to now-closed restaurant locations across Alabama, Georgia, and South Carolina. Affected entities include brands such as Luca Lagotto, Rodney Scott’s BBQ, Little Donkey, and Hero Doughnuts. As previously reported by 205focus.com, Pihakis filed for bankruptcy on August 6 following the stunning collapse of his restaurant group earlier this year.
The Financial Disputed Amounts
The lawsuit stems from two future receivables sale and purchase agreements—a financing arrangement where companies obtain working capital in exchange for a portion of future sales. The Florida financial firm's complaint details two specific deals:
- A November agreement involving a $200,000 loan set against a $270,000 repayment.
- A mid-December agreement for a $500,000 loan against a $695,000 repayment.
Fox Funding claims it is still owed $134,984 on the first contract, plus $44,000 in attorney fees, and $405,403.50 on the second contract, alongside roughly $134,000 in additional legal costs. In total, the firm is seeking $718,716.05 plus interest and fees.
While these legal battles unfold, it is worth noting that since late April, both Luca Lagotto and Little Donkey have transitioned to a new ownership group that includes Mouron, Bernhardt, and Gentry.
Pihakis is currently navigating Chapter 7 bankruptcy proceedings in Alabama’s Northern District, reporting debts exceeding $44 million against personal property valued at approximately $10.6 million.