iFunding says it settled lawsuit from investor who wanted to dissolve company

Crowdfunding startup agreed to pay $150K in cash

TRD New York /
Aug.August 31, 2016 07:00 AM

Real estate crowdfunding company iFunding says it settled a lawsuit brought by an investor who had sought to dissolve the company.

The startup agreed to pay $150,000 in cash to Michael J. Turner, in return for Turner giving up all claims against the company and its CEO William Skelley.

Turner, who runs a Connecticut-based contracting firm, invested $100,000 in the company in 2012 in return for a 20-percent ownership stake, according to court records. In January, he sued iFunding, claiming he was frozen out of decision-making. He sought unspecified damages, a court order requiring iFunding to buy his ownership stake, and the company’s dissolution.

“On behalf of the company and myself, we are glad to get this suit behind us and for reasonable terms,” Skelley said in a statement.

An attorney representing Turner did not immediately respond to requests for comment.

In March, iFunding settled a fraud lawsuit brought by real estate investment banking firm CapStack Partners over 2015 two real estate deals.


Related Articles

arrow_forward_ios
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
From left: 84 William Street, Rodrigo Niño and Larry Davis of Shorewood Property Group (Credit: Google Maps)

Crowdfunding firm to investors: Cough up $40M or lose it all

Crowdfunding firm to investors: Cough up $40M or lose it all
CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet hits $1B milestone, crowdfunding firm claims

CrowdStreet hits $1B milestone, crowdfunding firm claims
Rodrigo Nino, 84 William Street in Lower Manhattan and 1400 N. Orleans Street in Chicago (Credit: Facebook, Google Maps)

Prodigy Network investors say millions in limbo as company shuts them out

Prodigy Network investors say millions in limbo as company shuts them out
Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

Cadre brings on former Four Seasons CEO as president
As crowdfunding startups rethink their business model, many are becoming more like traditional real estate investment firms (Credit: iStock)

To survive, crowdfunding firms are remaking themselves

To survive, crowdfunding firms are remaking themselves
Crowdfunding: Crowded out?

Crowdfunding: Crowded out?

Crowdfunding: Crowded out?
arrow_forward_ios

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

Loading...