Caastle, a built -in fashion startup, whose management accused his founder, Christine Hunsicke of improper financial proceedings, begins to face the partner and supplier’s processes regarding the omission of payments and more accusations of fraud.
How First reported by Axios By the overalls seen by TechCrunch, Caastle is sued by P180, a vehicle that introduced to take a position in firms that use Caastle technology, and by Exp Topco, a clothing company that claims that the company has never paid it after reaching a settlement for copyright violation.
The Caastle representative didn’t immediately answer Techcrunch for comment.
. P180 supe He claims: “Nothing about Caastle was true.” The claim claims that Caastle tried to cover the details of his income and financial stability from P180. “Then he dishonestly induced, among others, P180 to collect capital and take out a lot of loans in anticipation that P180 would obtain real assets, which P180 finally did,” says the lawsuit, adding that Caastle also tried to force these two to merge.
The claim says that because P180 thought he was misled, his “investors took full control over the management,” the claim was continued. “The P180 has been hurt by exceeding $ 58 million and strives to regain these revenues, cancel the contract and unwind corporate ties with each other and Caastle.”
Meanwhile, Exp Topco also suits. This claims that Caastle violated A settlement agreement, not paying a high quality after reaching a settlement regarding the alleged copyright violation.
Axios is too Reporting rumors with a possible collective process against the investment company, which brought Caastle to retail investors, although it didn’t report the investor’s name. Axios first informed Caastle about financial problems a month ago. Hunsicke, the founding father of the company, resigned from the management board and gave up the role of CEO when the company said that it examined the allegations of improper financial proceedings.
The company explores bankruptcy and secured $ 2.7 million financing to assist this process, said Axios. Caastle collected over USD 530 million in total, and the last round was collected in 2019 at USD 43 million, it is estimated at the Pitchbook.
In April, the management confirmed Techcrunch that his financial circumstances were so tragic at that point that it needed to exclude employees. If all $ 530 million disappear, it might be one of the best cases of fraud regarding startups in the recent history. For comparison, Frank, launching applications for a student loan, was purchased by JPMorgan for $ 175 million. The founding father of Frank, Charlie Javice, was found guilty last month.
TechCrunch talked to two former employees who said they weren’t surprised when he had financial problems, although they didn’t witness any of the alleged fraud.
A former worker who asked to keep up anonymity does not resemble a company that contained financial health updates or how he is doing well. “I think that everyone laughed and said:” Oh, we probably don’t earn any money, “said TechCrunch.
When asked about the response to the allegations of fraud, this person said: “I don’t think anyone would expect it.”