Some cryptocurrency investors in California may have heard that one of the founders of the Ethereum project is facing a lawsuit from an ex-business associate. The lawsuit was filed in New York by Harrison Hines, who founded a company called the Token Foundry, against Joseph Lubin. The Token Foundry received support from the ConsenSys project. Lubin was also involved in its founding, and ConsenSys AG and the Consensus Token Foundry LP are named in the suit as well. The company was founded to introduce tokens with new blockchain companies, but most of the staff, including Hines, was laid off in 2018. The lawsuit deals with the possibility that ConsenSys might have concealed information about how it disbursed equity and what employees should have received when the Token Foundry went out of business.
The lawsuit asks for compensation of more than $13 million. It alleges that Lubin committed fraud and breach of contract and also accuses him of unjust enrichment, quantum merit, conversion, unpaid profits and declaratory judgment. Most of the compensation is for monetary damages although more than $400,000 is for unpaid profits.
The summons required Lubin’s response within a certain amount of time, and if there was no response, there would be a judgment by default. It is unclear whether there has been a response.
Business litigation may deal with a number of different issues besides breach of contract, including disputes among partners, issues with employees or former employees, problems with shareholder agreements, disputes with vendors or customers and more. An entrepreneur or company that is dealing with business litigation can find the process damages productivity and creates stress. An attorney may be able to assist by explaining the options and pursuing an efficient solution.