Castle, Amblotted Fashion Startup whose board of directors has been accused of financial abuse of his founder Christine Honsik, he has begun to face the case from the partner and supplier for allegations of missing and more allegations.
As Reported by the first axis And by a suit seen by TechCrunch, Castle is being sued by P 180, it is a vehicle that was launched to invest in companies that use castle technology, and a garment company called XP Topco that has never provided it after the company reaches a settlement for copyright violation.
A representative Castle did not immediately respond to TechCrunch’s request for comments.
The P180 suit “Nothing was true about Castle was true.” The case claimed that Castle tried to hide the details of his income and the details of financial stability from P 180. “It then fraudulently persuaded P 180 among other things, the P180 would gain effective assets in anticipation of raising capital and receiving multiple loans, which P. 180 had finally done,” the case complained that Castle tried to merge two men as well.
The case also said that P180 believed it was confused, “investors took full control of the board,” the case continues. “P180 has been damaged for more than $ 58 million and those money is trying to recover, dispel and expose corporate relationships between yourself and Castle.”
Meanwhile, the XP Topco is also being sued. It Alleged that the castle had violated A settlement agreement without paying a fine after reaching the settlement on the alleged copyright violation.
And the axes are also Report about the rumor of potential class-action suits Against an investment agency that Castle brought retailers, it did not report the names of the investors. Axios first a month ago reported Castle’s financial disturbance. The founder of the company, Honisi, resigned from the board and resigned from the CEO’s role when the company said it was investigating the allegations of financial abuse.
Axios also said the company was exploring bankruptcy and secured $ 2.7 million to assist this process. Castle has collected more than $ 530 million in total, its last round raised in 2019 for $ 43 million, pitchbook estimates.
In April, the board confirmed to TechCrunch that its financial conditions were so deadly at that time that its employees had to be ferry. If the whole 530 million dollars is gone, it will be one of the largest startup fraud in recent history. In comparison, Frank, Student Loan App Bought for $ 175 million by startup, JP Morgan. Frank founder Charlie Javis was found guilty last month.
TechCrunch spoke to two former employees who said they were not surprised to hear that the company had financial disturbance, though they did not see the fraud of any allegations.
A former employee, who said to stay anonymously, does not remember the updates about its financial health or how well it is doing. “I think everyone laughed it and was like that, ‘Oh, we probably don’t make any money,” the employee told Techcunch.
Asked about the reaction of the fraud allegations, the man said, “I don’t think anyone expected it.”