Laundry Start-Up Rumby’s CEO Pocketed Investor Funds, Suit Says

The implosion of Rumby, a tech start-up that coordinated pick-up and delivery of laundry and dry cleaning, and the disappearance of investor funds are the fault of the company’s CEO and a recent director, an investor says in a lawsuit filed Wednesday.

Refinery Management LLC alleges that Benjamin Cantey, the co-founder and then-CEO of Carbon IQ Inc., which did business as Rumby, persuaded Refinery to invest $3 million in August. Refinery filed the complaint in the US District Court for the Southern District of Ohio.

Cantey allegedly represented that Rumby was growing and financially sound, and “had a pending $20 ...