Caastle is now facing the start of the turbulent restriction now a new law

Caastle, a besieged fashion company that accused the Board of Directors of its founder, Kristen Honsker, began with financial misconduct, to face lawsuits from a partner and a supplier on past payments and more allegations of fraud.

like Axios was first reported Through the claims that Teccrunch is being paid, Caastle is prosecuted by the P180, a vehicle it launched to invest in companies that used Caastle Technology and Exp Topco, a clothing company that says Caastle has never paid it after reaching a settlement to violate copyright.

Caastle actor did not immediately respond to the Techcrunch request for comment.

the P180 suit He claims, “Nothing about Caastle was true.” The case claims that Caastle tried to hide the details of its income and financial stability from the P180. “After that, it caused fraud, P180, among other things, to raise the capital and remove multiple loans in expecting that the P180 would get viable assets, which P180 did in the end,” she claimed, adding that Caastle also tried to force the two to integrate.

The lawsuit continues to say this because the P180 believes it has been misled, because “investors have taken control of the Council”, the lawsuit continues. “P180 has been harmed by more than $ 58 million and seeks to recover these revenues, cancel the contract, and relax corporate relations between it and Caastle.”

Meanwhile, Expco Topco also sues. He – she Caastle claims a breach A settlement agreement not to pay fines after reaching the settlement due to the violation of the alleged copyright.

And axios is also Reporting rumors of a possible group case Against an investment company brought Caastle Retail Investors, although it has not reported the name of the investor. Axios first reported CASTLE’s financial problems a month ago. Honsker, the founder of the company, resigned from the board of directors and had its role as an executive president when the company said it was investigating allegations of mismanagement of financial behavior.

The company explores bankruptcy and secures $ 2.7 million in financing to help this process, AXIOS also said. Caastle raised more than 530 million dollars, with its last tour in 2019 raised by $ 43 million, according to Pitchbook estimates.

In April, the Board of Directors confirmed to Techcrunch that its financial conditions were so terrible at the time that it had to leave the employees. If the amount of $ 530 million is disappeared, this will be one of the largest fraud in the start of modern history. In comparison, Frank has been purchased, the student loan application has started, by JPMorgan for $ 175 million. Frank Founder, Charlie Gavis, I was convicted of fraud last month.

Techcrunch spoke with two former employees who said they were not surprised by hearing that the company was suffering from financial problems, although they had not seen any alleged fraud.

One of the former employees, who asked not to be identified, does not remember the company that bears updates about its financial health or the quality of its performance. “I think everyone laughed and it was like,” Oh, maybe we do not reap any money, “the employee told Techcrunch.

When asked about a reaction to the allegations of fraud, this person said, “I don’t think anyone expects it.”