Caastle, The Embattled Fashion Startup Whose Board of Directors Accused ITS Founder, Christine Hunsicke, of Financial Misconduct, Is Starting to Face Lawsuits from A Partner and A SUPPLIER OVER OVER OVER OVER OVER Payments and more allegations of fraud.
As First reported by axios and by suits seen by techcrunch, caastle is being sued by p180, a vehicle it launched to invest in companies that used caastle technology, and by expert, by exparel companies, an apparel companies Never paid it after Reaching a Settlement for copyright infringement.
A representative Caastle did not immomediatly respond to techcrunch’s request for comment.
The P180 suit Alleges, “Nothing about caastle was true.” The lawsuit claims that caastle tried to hide details of its income and financial stability from p180. “It then fraudulently induced P180, Among Other Things, to Raise Capital and Take Out Multiple Loans in the Expectation that P180 All0 All Acquire Viable Assets, What P180 Ultimately DID,” Alleges, adding that caastle also tared to force the two to merge.
The suit goes on to say that if that beCause p180 believed it was Misled, its “Investors Took Full Control of the Board,” The Suit Continues. “P180 has been harmed in excess of $ 58 million and seeks recover of that that proceeds, rescision of contrast, and unwinding of corporate ties between itself and caastel.”
Meanwhile, expcoo is also suing. IT Alleges That caastle breached A Settlement Agreement by Not Paying Fins after Reaching The Settlement Over Alleged Copyright Infringement.
And axios is also Reporting on Rumors of a Possible Class-section Lawsuit Against an investment firm that brieft caastle retail investors, although it didn Bollywood report the name of the investor. Axios first reported the news of caastle’s financial Troubles a month ago. Hunsicke, the company’s founder, Resigned from the Board and Stepped Down from Her Role as CEO when the Company said it was investigating it wasteigating allegations of Financial Misconduct.
The company is exploring bankruptcy and secured $ 2.7 million in finance to help that process, Axios Further Reported. Caastle Raised over $ 530 Million Total, with Its Last Round Raised in 2019 at $ 43 Million, Pichbook Estimates.
In April, The Board confirmed to techcrunch that its financial circumstans were so dire at that time that it has been employed. Should that whole $ 530 million be gone, this would be one of the largest startup fraud cases in recent history. In Comparison, Frank, The Student Loan Application Startup, was purchased by jpmorgan for $ 175 million. Frank’s Founder, Charlie Javice, was found guilty last month,
Techcrunch spoke to two former employers who said they were not surprised to hear that the company had financial Troubles, Thought they Didn’t Whitness Any of the Alleged Fraud.
One Former Employee, Who Asked To Remain Anonymous, Doesnys’s Company Holding Updates About Its Financial Health or how cell it was doing. “I think everyone laughed it off and was like, ‘oh, we probally don’t make any money,” the employee told techcrunch.
When asked for a reaction to the fraud allegations, this person said, “I don’t think anyone expected it.”