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.

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