Real estate crowdfunding platform iFunding (Innovational Funding LLC) has settled a lingering lawsuit regarding a shareholder claim against the young company. According to information provided by iFunding, the lawsuit brought against the company by Michael J. Turner has been settled for cash. The cash settlement was for $150,000. iFunding also stated that Turner had released the company and founder William Skelley from any and all future claims. The suit, Case No. 11916-VCMR filed in Delaware State Court, alleged that founders Skelley and Sohin Shah, who has since left the company, had violated the iFunding operating agreement and sought the “dissolution of iFunding and an appointment of a liquidation trustee.”Turner also claimed monetary damages and a court order mandating the purchase of his 20-percent stake.
William Skelley, co-founder & CEO of iFunding commented on the announcement;
“On behalf of the company and myself, we are glad to get this suit behind us and for reasonable terms.”
iFunding also stated its most recent month was the “best ever and profitable.”
iFunding took a one-two legal punch several months back as two lawsuits were filed against the company at about the same time. CapStack Partners had filed a grievance with the Supreme Court of the State of New York, in the county of New York, seeking damages of $585,000. The first by CapStack was quickly settled for a reportedly small amount and was “discontinued with prejudice”. Today’s announcement should put the challenging legal chapter behind iFunding and allow it to focus on growing its real estate marketplace.