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Stock impact report

Silicon Valley braces for the legal fallout from FTX [Fortune]

GoodRx Holdings, Inc. - Class A (GDRX) 
Company Research Source: Fortune
It has barely been a week since FTX blew up and already lawyers are circling. On Friday, FTX filed for bankruptcy as former CEO Sam Bankman-Fried resigned, replaced by John J. Ray III, the lawyer who oversaw the liquidation of Enron. The bankruptcy proceedings promise to be a convoluted affair, litigating how FTX spent customer funds and trying to untangle conflicts of interest among its 134 affiliated companies. “It’s going to be complicated with so many affiliated companies, so many creditors, so many customers, and the jurisdictions in different countries,” explained Reena Aggarwal, director of the Georgetown University McDonough Psaros Center for Financial Markets and Policy. “This is a maze of issues.” There has already been plenty of finger-pointing at the VCs who raced to throw money at Sam Bankman-Fried, doing little or no due diligence along the way. “If you’re just making a minority investment, you might not do the level of due diligence that maybe you should if you belie Show less Read more
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