Cooley offices in Washington, D.C. Photo: Diego M. Radzinschi/ALM Startup Investors Sue Cooley Claiming Negligent Representation, Fraud Cover-Up
Gould Ventures alleges that Cooley withheld details about Carbon IQ CEO Benjamin Cantey's fraudulent activities.
September 27, 2024 at 02:43 PM
5 minute read
What You Need to Know
- Cooley was sued by Gould Group, investors in a startup called Carbon IQ on Thursday.
- The suit claims Cooley knew about CEO Benjamin Cantey's fraudulent dealings and withheld that information.
- Cooley has not yet responded to the allegations it deliberately withheld information about Cantey's misconduct from investors.
Cooley is being sued in federal court in New Jersey for alleged negligent representation by Jason Gould and Gould Ventures, investors who claim the law firm duped them into backing a now-defunct startup called Carbon IQ, which did business as Rumby.
The investors filed the suit in the U.S. District Court for the District of New Jersey on Thursday. They claim that Cooley withheld information from them about Carbon IQ CEO Benjamin Cantey's fraudulent activities, including document forgery, securities fraud and misrepresentation of financial information, and misappropriating investor funds. Gould Group and Gould, its founder, are requesting at least the $140,000 they invested in the company, plus attorney fees and punitive damages.
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