A new class action lawsuit is targeting the New York-based law firm Sullivan & Cromwell (S&C), which previously served as legal counsel for FTX. 

The class action complaint, filed with the U.S. District Court, Southern District of Florida, is spearheaded by named plaintiffs Edwin Garrison and others and asserts that S&C played an instrumental role in the multi-billion dollar fraud scheme carried out by FTX.

It claims the law firm essentially acted as an accessory to the devastation suffered by countless investors entangled in the FTX downfall.

The exhaustive lawsuit, extending over 75 pages, paints a detailed portrait of alleged collusion and deliberate oversight, implicating both the renowned law firm and FTX insiders. 

Allegations of aiding and abetting fraud

At the heart of the allegations lies the claim that S&C disregarded fundamental legal and ethical standards and actively perpetuated the deception that led to the FTX crisis. 

The compendium of claims ranges from counts of aiding and abetting fraud to violating RICO statutes, signaling the plaintiffs’ determination to uncover the potential entanglement of legal advisers in one of the most infamous financial debacles of the digital age.

Garrison and his co-litigants have pinpointed specific instances of what they claim are illicit activities, such as significant financial transactions and internal communication, which they argue S&C must have been privy to, given the close advisory relationship they had with the FTX leadership.

They also highlighted that the law firm’s engagement with FTX wasn’t merely superficial; citing financial figures from Bloomberg, the plaintiffs claim S&C profited immensely from the relationship, raking in approximately $8.5 million in fees during the 16 months before FTX went under.

Sullivan & Cromwell’s windfall from FTX downfall

According to Garrison, S&amp

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Author: Julius Mutunkei

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