The Ferrum Capital lawsuit of 2021 is more than a footnote; it serves as a cautionary tale for funders and borrowers alike.
The most explosive allegation was that the defendant had knowingly misrepresented the status of the underlying litigation. Ferrum claimed that the defendant had provided forged "case status reports" showing the case was still in discovery when, in fact, settlement negotiations had already concluded. Ferrum argued it would never have advanced the funds had it known the true timeline. ferrum capital lawsuit 2021
By 2021, Ferrum had established a reputation for aggressive due diligence and high-yield, high-risk funding arrangements. However, this aggressive posture would soon become a double-edged sword when a major deal went sour. The Ferrum Capital lawsuit of 2021 is more
Here is a piece summarizing the key elements of that case. Ferrum argued it would never have advanced the
Beginning around 2018, Ferrum Capital and its related entities (Ferrum II, III, and IV) solicited investments by promising over four-year periods.