Legislation Companies
Lawsuit allegations in opposition to Sullivan & Cromwell are ‘innuendo masquerading as information,’ movement says
Sullivan & Cromwell is searching for dismissal of a proposed class motion lawsuit alleging that it aided and abetted fraud when it supplied authorized providers at cryptocurrency trade FTX. (Picture from Shutterstock)
Sullivan & Cromwell is searching for dismissal of a proposed class action lawsuit alleging that it aided and abetted fraud when it supplied authorized providers at cryptocurrency trade FTX.
In a Might 13 motion to dismiss, Sullivan & Cromwell says the go well with allegations are “innuendo masquerading as information,” report Reuters and Bloomberg Law.
Samuel Bankman-Fried, the founding father of FTX, was convicted in November 2023 on costs of fraud and conspiracy. Prosecutors mentioned he touted the trade as a protected platform for crypto asset buying and selling whereas diverting billions of {dollars} in buyer property to his privately held hedge fund.
Whereas representing FTX over a interval of 14 months, the regulation agency supplied illustration in about 20 discrete issues, in accordance with the movement filed within the U.S. District Court docket for the Southern District of Florida. Sullivan & Cromwell is now working as FTX chapter counsel.
The go well with by former FTX prospects is predicated on a idea “that as a result of S&C supplied lawful authorized providers to FTX whereas Bankman-Fried was on the helm, earlier than his fraud was uncovered, S&C should have been complicit in that fraud,” the movement says.
The claims “relaxation on threadbare allegations, unwarranted assumptions and authorized conclusions that the courtroom needn’t settle for as true even on the pleading stage,” the movement says.
There aren’t any allegations that Sullivan & Cromwell had precise information of fraud or that the agency considerably assisted fraud, the agency argued.
Sullivan & Cromwell attorneys “have labored across the clock to unwind the fraud perpetrated by Bankman-Fried and his inside circle” in its capability as bankruptcy counsel, the movement says.
The “terribly profitable” efforts led to a reorganization plan that gives full fee of buyer and nongovernmental creditor claims together with curiosity, in accordance with the movement.
The plaintiffs are searching for to “get well the identical damages for which they’re already being compensated by the chapter course of,” the movement says.
Hunton Andrews Kurth is representing Sullivan & Cromwell within the case, Garrison v. Sullivan & Cromwell.
