FTX law firm Sullivan & Cromwell LLP was dismissed from a lawsuit filed by some of the failed crypto exchange’s investors on Wednesday, according to a district court filing.
The investors said that the law firm was voluntarily dismissed from the suit with prejudice in a notice filed with the US District Court for the Southern District of Florida. A proposed class alleged Sullivan & Cromwell attorneys “actively participated” in FTX’s fraud through their legal work for the exchange.
- Sullivan & Cromwell called the allegations “dubious” and said the investors hadn’t alleged any knowledge of fraud while performing certain legal services
- The law firm worked for FTX leading up to its November 2022 crash and racked up more than $180 million in billing hours for its work guiding the exchange through Chapter 11 restructuring proceedings in Delaware
- Dozens of third-party advisers and celebrity endorsers, including former NFL star Tom Brady, still face investor claims of enabling FTX’s fraud throughout the multidistrict litigation
The case is In Re: FTX Cryptocurrency Exchange Collapse Litigation, S.D. Fla., No. 1:23-md-03076, 10/9/24.
To contact the reporter on this story:
To contact the editor responsible for this story:
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.