Banking Startup’s Bankruptcy Estate Sues Law Firm Over Collapse

A trustee handling the bankruptcy estate for “anti-woke” banking services startup GloriFi is suing Chapman & Cutler LLP on allegations that it played a role in the company’s downfall by aiding its founder’s alleged self-dealing efforts.

The Chicago-based law firm violated its fiduciary obligations “which resulted in GloriFi suffering massive financial harm,” the trustee said a Thursday complaint in the US Bankruptcy Court for the Northern District of Texas.

Chapman & Cutler amended documents that pushed through transactions to benefit founder Toby Neugebauer, the suit alleged.

GloriFi would’ve merged with a special-purpose acquisition company in a transaction to go public ...