A group of insurance companies tied to the collapse of Greg Lindberg’s insurance empire is urging the North Carolina Supreme Court to leave intact a $122 million contempt penalty against the convicted businessman, arguing that he has shown no valid reason for the state’s highest court to revisit the ruling.
Southland National Insurance Corp., Bankers Life Insurance Co., Colorado Bankers Life Insurance Co., and Southland National Reinsurance Corp. told the court that both the trial court and the Court of Appeals correctly found Lindberg and his company, Global Growth Holdings LLC, in contempt for failing to comply with prior orders tied to the insurers’ liquidation proceedings.
In their filing, the insurers rejected Lindberg’s claim that he lacks the immediate funds to pay the sanction. They said North Carolina law does not require a contemnor to hold cash equal to the penalty, pointing out that courts may consider a party’s broader assets and ability to liquidate property. According to the companies, evidence showed Lindberg could access or sell assets to satisfy the order.
“The evidence of contempt and the present ability to purge it was clear and unrebutted,” the insurers wrote, adding that no unsettled legal question justifies Supreme Court review.
Lindberg has argued that the contempt order is improper because he cannot readily pay the full amount. The insurers countered that accepting that reasoning would weaken courts’ authority to enforce compliance, especially in complex financial disputes involving wealthy defendants who can shift funds between entities.
The companies accused Lindberg of moving tens of millions of dollars between affiliated businesses even after a judge barred such transfers. They said allowing him to avoid penalties would reward sophisticated efforts to shield assets and would undermine equal treatment for other litigants who must sell property to comply with court directives.
The dispute stems from a 2019 lawsuit in which the insurers alleged Lindberg violated a memorandum of understanding meant to stabilize their operations. Court filings say he diverted large sums of policyholder funds to other ventures. In exchange for resolving those claims, Lindberg allegedly agreed to relinquish ownership stakes and restructure certain businesses under independent oversight. The insurers maintain those commitments were never fulfilled.
A trial judge later ordered Lindberg to comply and found him in contempt after determining money continued to flow through shell companies and Global Growth. To purge the contempt, Lindberg was directed to pay $65.7 million and Global Growth $56.9 million, totaling roughly $122 million. The order also warned of possible jail time for continued noncompliance.
Lindberg, 55, has been held at the Gaston County jail since surrendering in late 2024. He also faces separate federal charges related to conspiracy, bribery and money laundering, with sentencing expected later this year.
Attorneys for the insurers declined to comment. Counsel for Lindberg did not immediately respond to requests for comment.
The case is pending before the North Carolina Supreme Court.
