Branson, Virgin Neighborhood reputations at centre of $250 million London court clash

© Reuters. FILE PHOTO: Richard Branson, founder of Virgin Neighborhood, poses for a photograph on board of his original cruise liner, the Scarlet Girl at Dover Port in Dover, Britain, February 21, 2020. REUTERS/Simon Dawson

By Sam Tobin

LONDON (Reuters) – British billionaire Richard Branson severely damaged Virgin Neighborhood’s recognition by residing in a tax haven whereas UK-based fully mostly airline Virgin Atlantic sought a government bailout at some level of the pandemic, in line with internal Virgin emails cited in a $250 million London lawsuit on Monday.

The emails were cited by attorneys for U.S. practice operator Brightline, which is being sued by the Virgin Neighborhood after cancelling a deal to use the Virgin imprint in 2020, steady over 18 months after it became as soon as signed.

Below the deal Brightline operated a rail line in Florida the use of the title Virgin Trains USA.

Brightline says it cancelled the deal for the reason that Virgin imprint had been hit by detrimental press coverage of Branson’s 2020 claim that Virgin Atlantic would desire a bailout from the British government to outlive the pandemic.

Brightline’s attorneys cited internal Virgin Neighborhood emails describing community founder Branson being based fully mostly in the British Virgin Islands for tax purposes as “a recognition killer”, whereas one electronic mail from an exterior public kinfolk adviser mentioned: “Richard needs to tell he is no longer any longer a ruthless, tax-evading billionaire.”

In an April 2020 electronic mail, Virgin Neighborhood CEO Josh Bayliss referred to Branson’s tax residency in the case of the inquire for a bailout, asserting: “Richard can no longer ruin out the criticism. The very fact is he has paid as small tax as imaginable”.

Virgin argues its imprint became as soon as no longer materially damaged by the community’s facing of COVID-19, that method Brightline became as soon as no longer entitled to ruin the licensing take care of out paying an exit fee of as much as $200 million. The firm is additionally seeking unpaid royalties.

Virgin’s attorney Daniel Toledano mentioned in court filings that the emblem suffered some detrimental press in Britain in 2020 following Virgin Atlantic’s inquire for government make stronger, nonetheless its recognition hasty recovered and became as soon as unaffected in the United States.

Brightline’s attorney Nigel Tozzi, then all all over again, mentioned the deal had entitled his client to a imprint with a excessive worldwide recognition, admire Coca-Cola (NYSE:) or leading European soccer groups Honest Madrid and Barcelona.

“It is the Beatles, no longer the Bay City Rollers,” he mentioned in court filings.