Fenwick & West has asked a Florida judge to block efforts to update a class-action lawsuit that claims the firm was closely involved in the events leading to the collapse of FTX.
In a filing submitted on August 25, Fenwick argued that the updated claims have no merit. The firm said it merely provided standard legal services and had no knowledge of any fraudulent activity.
Fenwick also criticized the timing of the amended lawsuit. According to the firm, the materials on which the plaintiffs rely have been publicly available for years. It also called the complaint misleading and lacking in substance.
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One key point raised by the FTX users is testimony from former FTX engineer Nishad Singh. Plaintiffs claim Singh said Fenwick helped disguise misused customer funds and questionable loans.
However, Fenwick stated that Singh only described the firm’s role in advising on how to structure founder loans, a common legal task for private companies.
Fenwick further noted that many witnesses in Sam Bankman-Fried’s trial confirmed that the fraud occurred without the awareness of FTX’s internal lawyers, external advisors, or accountants.
The updated lawsuit also introduces new claims that Fenwick played a role in launching and marketing the FTX Token (FTT), which may violate securities laws in Florida and California. Fenwick argued that they should have been included when the lawsuit was first filed.
The firm suggested the plaintiffs are adding these claims because most of their original allegations, particularly those targeting celebrities who endorsed FTX, have already been dismissed.
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