The Real Deal New York

IFunding, CapStack settle fraud lawsuit

Crowdfunding startup was accused of foul play over two real estate deals

March 18, 2016 12:05PM
By Konrad Putzier

William Skelley

William Skelley

Real estate investment banking firm CapStack Partners settled its lawsuit against crowdfunding startup iFunding, according to sources and public records.

In a stipulation filed with the New York Supreme Court Tuesday, the two parties discontinued the suit “with prejudice,” meaning CapStack cannot sue over the matter in the future.

CapStack declined to comment. William Skelley, founder and CEO of iFunding, told The Real Deal that he is “extremely enthusiastic and happy with the outcome.” Both parties declined to disclose the terms of the settlement. Crowdfund Insider first reported that the suit was discontinued, but didn’t mention that the parties settled.

In December, CapStack filed suit over two real estate financing deals the firm partnered on with iFunding last year, alleging fraud and breach of contract, among other things. The firm sought damages of at least $585,000.

New York-based iFunding, which funds real estate projects through an online platform, is still battling another lawsuit from investor Michael Turner, who alleges he was frozen out of the company.