Phoenix Capital Group Holdings, LLC, a Delaware-based investment firm specializing in energy markets, has recently been involved in several legal disputes. These cases span issues such as defamation, corporate governance, and financial obligations, reflecting the complex legal landscape in which the company operates.
Defamation Lawsuit Against Forbes Media
In December 2024, Phoenix Capital and its CEO, Adam Ferrari, filed a defamation lawsuit against Forbes Media in the Delaware Superior Court. The lawsuit stemmed from an October 2024 article that allegedly implied the company was operating a Ponzi scheme. The plaintiffs contended that the article contained false and defamatory statements that harmed their reputations.
However, in August 2025, a federal judge in Delaware dismissed the lawsuit. Judge Gregory B. Williams ruled that the article did not imply that Phoenix Capital was running a Ponzi scheme, stating that the “inferential leaps required to sustain such an implication are simply untenable” .
Dispute Over Mineral Royalties in Wyoming
In a separate legal matter, Phoenix Capital appealed two district court orders in Wyoming. The company sought to recover mineral royalties as a life tenant and alternatively requested the reformation of a deed that established its life estate. The court, however, dismissed both claims, citing the doctrine of waste and the statute of limitations. The ruling emphasized that a life tenant does not have the right to receive royalties without an agreement with the remainderman or express language in the deed allowing for such payments .
Legal Action Against Incline Energy Partners
In June 2022, Phoenix Capital filed a civil lawsuit against William Francis and Incline Energy Partners, L.P. in the 116th District Court of Dallas County, Texas. The lawsuit alleged defamation, business disparagement, tortious interference with contract, tortious interference with prospective contract relations, unfair competition, and civil conspiracy. The company sought monetary damages amounting to $50 million. The case highlights the company’s proactive approach in protecting its business interests through legal means
Financial Challenges and Credit Agreement Amendments
Amidst these legal challenges, Phoenix Capital has faced financial difficulties. In December 2024, the company entered into a Limited Waiver and Amendment No. 3 to its Amended and Restated Senior Secured Credit Agreement. This amendment was necessitated by the company’s failure to comply with certain financial covenants, specifically maintaining a current ratio of at least 0.90 to 1.00. The waiver allowed the company to avoid default but underscored ongoing financial pressures .
Allegations of Deceptive Business Practices
In May 2025, Phoenix Capital faced a lawsuit alleging deceptive business practices. The lawsuit claimed that the company engaged in misconduct, though specific details were not disclosed. This case adds to the list of legal challenges confronting the firm and may have implications for its operations and reputation .
Conclusion
Phoenix Capital Group Holdings, LLC is currently navigating a complex array of legal disputes. From defamation lawsuits to financial covenant breaches and allegations of deceptive practices, the company is under significant scrutiny. These ongoing legal challenges may impact its operations, financial stability, and reputation in the energy investment sector. Stakeholders and investors should monitor these developments closely to assess potential risks associated with the firm’s activities.
