FTX creditors withdraw class action against US law firm Sullivan & Cromwell

On October 10, FTX creditors voluntarily withdrew a class action lawsuit against US law firm Sullivan & Cromwell (S&C), Cointelegraph reported. The Moskowitz law firm, which is the lead representative of the plaintiffs, said the withdrawal was voluntary and did not involve any settlement agreement.

On February 16, 2024, a group of FTX creditors sued S&C, alleging that the law firm participated in and profited from a multi-billion dollar fraud at FTX. The lawsuit seeks damages for civil conspiracy, aiding and abetting breach of fiduciary duty, and aiding and abetting fraud S&C has acted as FTX's outside counsel on a number of transactions and is currently overseeing FTX's bankruptcy proceedings.

Adam Moskowitz, Founder and Managing Partner of the Moskowitz Law Firm, explained the reasons for the withdrawal: “Based on the evidence we have seen, we do not believe there are sufficient grounds to bring the lawsuit, and so we are withdrawing it. Now we can sit down and work together to try to maximize compensation for the victims from other third parties.