The Stronachs have resolved a bitter five-year court battle over alleged mismanagement of the family fortune, which could potentially be worth hundreds of millions of dollars.
On Wednesday, the Stronach Group said that lawsuits filed by Selena and Andrew Stronach – the granddaughter and son of patriarch Frank Stronach – have been resolved in a confidential settlement. In 2019, the pair sued Belinda Stronach, her children, former Stronach executive Alon Ossip and the family business, alleging the Stronach wealth was not being distributed evenly.
In announcing the settlement, the Stronach Group said that Belinda Stronach will continue on as chairman, CEO and president of the company.
“I am very pleased that the litigation with my brother and niece has been resolved. We look forward to moving ahead with exciting plans for our business and moving forward as a family,” Ms. Stronach said in the statement.
The settlement comes months after police arrested Frank Stronach, who faces 13 criminal charges, including rape, forcible confinement and sexual assault. The incidents span decades, from the late 1970s through to 2024 and involve 10 complainants.
This summer, as part of the litigation, Selena Stronach asked the court to order the family business to produce copies of any legal settlements and human-resources complaints relating to allegations of sexual impropriety involving Frank Stronach. Last month, a judge denied that request.
Mr. Stronach, 91, founded Magna International in 1957 and built the business into one of the world’s largest auto parts suppliers. He resigned as Magna’s chairman in 2011 to pursue a career in politics in Austria, where he was born. During this period, the Stronach family divested its controlling stake in Magna and funnelled the family fortune – which in 2018 was estimated to be US$1.5-billion by Forbes magazines – into the Stronach Group, which is a collection of entities and businesses that most notably operate in the areas of racing and gambling.
In the years that followed, Belinda Stronach took the reins of the billion-dollar family business. It was during her leadership that Selena and Andrew Stronach have alleged that the vast family wealth was both mismanaged and distributed unevenly.
In court filings, the pair have alleged that “hundreds of millions of dollars” have been wasted on questionable business ventures. They also claim that they have been denied a full accounting of how family money has been spent and distributed.
This is not the first litigation between Stronachs. In 2020, Frank and Belinda Stronach resolved a three-year battle over the family business.
After years of grooming his daughter to take over the family business, Frank sued Belinda for control of the family business. He accused her of a “lack of business acumen.” She countered he had made “unsound business decisions.”