Private equity firms Sequoia Capital, Thoma Bravo, and Paradigm Operations were hit with an investor class action Tuesday in California Northern District Court in connection with the collapse of the crypto trading platform FTX. The lawsuit claims that the investment firms irresponsibly bolstered FTX's reputation in order to raise the company's valuation and the worth of their investments. The suit, backed by Robbins Geller Rudman & Dowd, alleges claims for negligent representation, intentional misrepresentation, fraudulent inducement, civil conspiracy and violations of state consumer protection laws. Counsel have not yet appeared for the defendants. The case is 3:23-cv-00655, Rabbitte v. Sequoia Capital Operations, LLC et al.
Investment Firms
February 14, 2023, 10:17 PM