"Bankrupt "anti-woke" financial technology startup GloriFi is shooting their shot against Biglaw. Via trustee Scott M. Seidel, they filed a complaint in Texas bankruptcy court against Winston & Strawn and one of its partners seeking $1.7 billion in damages, alleging malpractice and a breach of fiduciary duties. GloriFi purported to be an "anti-woke" financial services firm for customers who care about that sort of thing, and hired Winston to go public at valuation of $1.7 billion."
"This allegedly led high-profile investors - Peter Thiel, Joe Lonsdale, Ken Griffin, and Vivek Ramaswamy - to lose confidence in the company. As such, "Winston Strawn's wrongdoing was a proximate cause in the nearly $2 billion in lost enterprise value suffered by GloriFi." Earlier this year, GloriFi's trustee filed a strikingly similar lawsuit against another law firm, Chapman and Cutler, for taking positions adverse to GloriFi's interests to please Neugebauer, the firm's "prized, self-proclaimed billionaire client.""
Trustee Scott M. Seidel filed a Texas bankruptcy-court complaint seeking $1.7 billion in damages against Winston & Strawn and a partner for alleged malpractice and breach of fiduciary duties. GloriFi positioned itself as an "anti-woke" fintech and retained Winston to take the company public at a $1.7 billion valuation, a transaction that never occurred. The complaint alleges Winston appeased and assisted founder Toby Neugebauer in repeated self-dealing and pressure campaigns that undermined GloriFi, outside investors, and independent board members. The alleged conduct prompted major investors to lose confidence and resulted in nearly $2 billion of lost enterprise value. A similar suit was previously filed against Chapman and Cutler.
Read at Above the Law
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