Honor Finance Holdings v. Spireon CA4/3

FACTS AND PROCEDURAL HISTORY

Most of the facts below are taken from our prior opinion in this matter, Honor Finance, LLC v. Spireon, Inc. (Jan. 20, 2023, G061171) [nonpub. opn.] (Honor Finance). I.

BACKGROUND

“The Company was formed in July 2011 to acquire part of a subprime automobile loan portfolio from an unrelated but similarly named

2 company called Honor Finance Corporation (HFC). The acquisition was completed in October 2011. Holdings was formed in September 2011 and was the sole member of the Company. Spireon is a Tennessee corporation that sells global positioning system (GPS) products for the installation in and the tracking of vehicles. Its principal place of business is in Irvine. “Plaintiffs filed this lawsuit against Spireon in January 2021. Generally, plaintiffs alleged Spireon was involved in an illicit scheme with nonparty Robert DiMeo, who was an officer at HFC. After the Company acquired HFC’s loan portfolio, DiMeo became a vice president and the chief operating officer for the Company. He remained employed by the Company until 2018, when his fraudulent activity was uncovered. “The alleged illicit scheme involved GPS devices, which the Company sold to its…