Sullivan & Cromwell offices in Manhattan, New York. Photo: Ryland West/ALM FTX Customers Double Down on Claims Against Sullivan & Cromwell
A Monday court filing opposing Sullivan & Cromwell's motion to dismiss reiterated claims that the law firm aided the fraud at FTX.
July 30, 2024 at 02:08 PM
3 minute read
What You Need to Know
- FTX customers suing Sullivan & Cromwell filed a motion opposing the law firm's motion to dismiss the class action lawsuit on Monday.
- The filing accuses Sullivan & Cromwell of deflecting blame toward Fenwick & West and overstating the true value of the firm's recovery for FTX customers.
- Sullivan & Cromwell has contended that it was unaware of the fraud as it worked on 20 prepetition matters for FTX before representing the company in bankruptcy as the debtor's counsel.
FTX customers aren't backing down from a class action lawsuit against Sullivan & Cromwell, according to a Monday court filing opposing the law firm's motion to dismiss.
The retail investors, represented by Adam Moskowitz of the Moskowitz Law Firm in South Florida, filed the initial class action within an ongoing multidistrict litigation in the Southern District of Florida in February. The complaint alleged that Sullivan & Cromwell not only knew of the ongoing fraud at FTX, but aided it over the course of 20 legal matters the law firm performed for FTX before the cryptocurrency exchange's collapse and subsequent bankruptcy filing.
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