Sullivan & Cromwell (S&C), a law firm located in New York, was formerly FTX’s legal counsel; they are now the targets of a new class action lawsuit.
Edwin Garrison and others have filed a class action lawsuit with the United States District Court for the Southern District of Florida, claiming that S&C was a key player in FTX’s multi-billion dollar fraud operation.
Many investors were involved in the FTX collapse, and the lawsuit says the law firm was complicit in their misery.
Over the course of its 75 pages, the complaint accuses the renowned legal firm and FTX personnel of complicity and willful ignorance.
The main point of the accusations is that S&C deliberately continued the falsehoods that caused the FTX tragedy by ignoring basic ethical and legal principles.
The extensive list of allegations shows that the plaintiffs are hell-bent on finding any evidence of legal advisors’ involvement in the most notorious financial scandal of the modern era, with accusations ranging from aiding and abetting fraud to violations of RICO legislation.
Since S&C maintained an intimate advisory relationship with the FTX leadership, Garrison and his co-litigants contend that they were privy to particular instances of what they say are illegal conduct, such as major financial transactions and internal correspondence.
The plaintiffs also made it clear that S&C’s involvement with FTX was more than just lip service; using Bloomberg financial data, they assert that S&C made a killing off of the partnership, earning over $8.5 million in fees in the sixteen months leading up to FTX’s bankruptcy.
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