IFunding, CapStack settle fraud lawsuit

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

New York /
Mar.March 18, 2016 12:05 PM

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.


Related Articles

arrow_forward_ios
Grant Cardone (Getty)
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
84 William St, NY and 1400 N. Orleans St, Chicago (Google Maps, iStock)
Prodigy Network files for bankruptcy as lawsuits mount
Prodigy Network files for bankruptcy as lawsuits mount
Photo illustration of Rodrigo Niño, with Shorewood's Larry Davis, 84 Williams Street and 331 Park Avenue South (Getty, Google Maps, iStock)
Behind the biggest real estate crowdfunding implosion
Behind the biggest real estate crowdfunding implosion
PeerStreet co-founders Brew Johnson (CEO) and Brett Crosby (COO)
Crowdfunding platform PeerStreet launches debt fund for Covid-era opportunities
Crowdfunding platform PeerStreet launches debt fund for Covid-era opportunities
114 East 25th Street (Google Maps)
Troubled crowdfunding firm sells building at $10M loss
Troubled crowdfunding firm sells building at $10M loss
While the amount of crowdfunded real estate deals on offer has declined substantially in recent months, demand is strong for those investment opportunities that remain, such as the Renaissance Harborplace Hotel in Baltimore (iStock, Google Maps)
Small investors swarm crowdfunding real estate deals
Small investors swarm crowdfunding real estate deals
Rodrigo Niño (Credit: Prodigy Network)
Real estate crowdfunding pioneer Rodrigo Niño dies
Real estate crowdfunding pioneer Rodrigo Niño dies
Rodrigo Niño, 17 John Street and 85 West Broadway (Credit: Prodigy Network, Google Maps)
Crowdfunding firm seeks $30M bailout for second commercial building
Crowdfunding firm seeks $30M bailout for second commercial building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...