Aon Accused of Contributing to Collapse of Startup Vesttoo

Insurance broker Aon Plc was accused in a civil lawsuit of helping cause the collapse of Vesttoo Ltd., an Israeli insurance startup once valued at $1 billion that went bankrupt after disclosing certain documents underpinning its business were falsified.

A trustee responsible for recovering money for creditors of Vesttoo, which filed Chapter 11 in 2023 and subsequently liquidated, is suing Aon, according to a complaint unsealed Wednesday in Delaware bankruptcy court.

The lawsuit claims Aon “ignored red flags” about letters of credit and encouraged counterparties to work with Vesttoo despite expressing concerns internally about the business. The trustee, ...