Troubled startup CaaStle is now facing two new lawsuits and more allegations

Caastle, a fashion startup from a fashion state whose Committee of Director accused her founder, Christine Hunsicke, for financial abuse, begins to face partners’ lawsuits and suppliers for missing payments and more charges of fraud.

As First reported to Axios And the suits he saw Techcrunch, Caastle sued the P180, a vehicle that launched investments in companies used by Caastle Technology, and Expco Topco, a clothing company that said the company never paid for it after a settlement for a copyright violation.

Caastle’s representative did not immediately respond to Techcrunch’s request for comment.

AND P180 suit He states, “Nothing about Caastle was true.” The lawsuit claims that Caastle tried to hide the details of his income and financial stability from the P180. “Then he caused a fraudulent P180, among other things, to collect capital and take more loans in anticipation that the P180 would acquire sustainable property, which the P180 ultimately did,” the lawsuit said, adding that Caastle also tried to force the two of them to merge.

The lawsuit continues that, since the P180 believed that he was misled, his “investors took complete control of the plates,” the lawsuit continued. “The P180 has been saved by more than $ 58 million and is seeking recovery of these revenues, the abolition of the contract and the unwinding of corporate bonds between itself and Caastle.”

Meanwhile, EXP Topco also sues. It states that Kaastle broke up Settlement agreement without paying fines after reaching a settlement for alleged copyright violations.

A Axios is too Reporting on rumors of a possible class lawsuit Against an investment company that led investors in retail, although she did not report the investor’s name. Axios reported the news of Caastle’s financial trouble a month ago. Hunsicke, the founder of the company, resigned on the committee and departed from its role as executive director when the company said they were investigating the financial violation allegations.

The company investigates bankruptcy and provided $ 2.7 million funding to help with the process, Axios has further reported. Caastle raised a total of more than $ 530 million and the last round collected in 2019 at $ 43 million, according to Pitchbook.

In April, the Committee confirmed to Techcrunch that his financial circumstances were so difficult at the time that they had to be employed. If the whole $ 530 million disappears, this would be one of the biggest cases of fraud in recent history. For comparison, Frank, a startup of a student loan application, bought JPMORGAN for $ 175 million. Frank’s founder, Charlie Javice, was declared guilty of last month.

Techcrunch spoke with two former employees who said they were not surprised to hear that the company had financial problems, although they were not witnessing any alleged fraud.

One former employee, who asked to remain anonymous, does not remember that the company held updates about its financial health or how well it was doing. “I think everyone laughed and they were like,” Oh, we probably don’t make money, “said Techcrunch employee.

When asked by a reaction to the charges of fraud, this person said, “I don’t think anyone expected it.”