Sullivan & Cromwell office sign. Courtesy photo Sullivan & Cromwell Didn't Ignore FTX Red Flags, Second Examiner Report Concludes
FTX Group's in-house counsel withheld information in communications with Sullivan & Cromwell that prevented the law firm from seeing red flags, the report stated.
September 25, 2024 at 04:31 PM
4 minute read
What You Need to Know
- A second report from the court-appointed examiner in the FTX bankruptcy cleared Sullivan & Cromwell of a disqualifying conflict of interest in the firms' pre-petition work for Sam Bankman-Fried in his acquisition of Robinhood shares.
- The report also found that the firm was neither aware of red flags in FTX's books nor responsible for recognizing them, based on the information Sullivan & Cromwell partners received from FTX Group attorneys.
- Sullivan & Cromwell has billed more than $200 million in the matter since it placed FTX in bankruptcy in November 2022.
After an initial inquiry cleared Sullivan & Cromwell of allegations that the firm knew—or should have known—of the fraud at FTX prior to representing the company as debtors counsel, a second report from a bankruptcy court-appointed examiner cleared the law firm of a disqualifying conflict of interest in the case.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Cleary vs. White & Case: New York City Showdown Over $5 Billion Brazilian Bankruptcy
Davis Polk Lands Spirit Chapter 11 Amid Bankruptcy Resurgence
Law Firms Mentioned
Trending Stories
- 1Life, Liberty, and the Pursuit of Customers: Developments on ‘Conquesting’ from the Ninth Circuit
- 2Biden commutes sentences for 37 of 40 federal death row inmates, including two convicted of California murders
- 3Avoiding Franchisor Failures: Be Cautious and Do Your Research
- 4De-Mystifying the Ethics of the Attorney Transition Process, Part 1
- 5Alex Spiro Accuses Prosecutors of 'Unethical' Comments in Adams' Bribery Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
