TechFlow news, on October 10, according to Cointelegraph, FTX creditors voluntarily withdrew their class-action lawsuit against U.S. law firm Sullivan & Cromwell (S&C). The Moskowitz Law Firm, serving as lead counsel for the plaintiffs, stated that the dismissal was voluntary and did not involve any settlement agreement.
On February 16, 2024, a group of FTX creditors sued S&C, alleging the firm participated in FTX’s multibillion-dollar fraud and profited from it. The lawsuit sought damages for civil conspiracy, aiding and abetting breach of fiduciary duty, and aiding and abetting fraud. S&C had previously served as external legal counsel for FTX in various transactions and is currently overseeing FTX’s bankruptcy proceedings.
Adam Moskowitz, founder and managing partner of the Moskowitz Law Firm, explained the reason for the dismissal: "Based on the evidence we have seen, we believe there is insufficient basis to pursue the litigation, so we have withdrawn the complaint. Now, we can sit down together and work collaboratively to try to secure maximum recoveries for victims from other third parties."
