CaaStle, a clothing inventory monetization startup, has faced serious allegations of fraud, leading to scrutiny of its board of directors. Reports indicate that the board, which included a director from Alphabet, allowed the CEO to remain in position despite these allegations. This decision has raised concerns among investors, as it reportedly took months for the board to inform them of the situation. Analysts suggest that CaaStle could be considered one of the largest startup fraud cases in history, ranking behind FTX and Theranos. In a related corporate development, CoStar Group's chairman was ousted amid a hedge fund-driven board shakeup.
CoStar Chairman Ousted In Hedge Fund-Driven Board Shakeup https://t.co/v8dCfiHWrt
Sources: the board of directors of clothing inventory monetization startup CaaStle let its CEO remain after fraud allegations and took months to warn investors (@danprimack / Axios) https://t.co/6yKS0qpvzo https://t.co/mVjeMq1DaR https://t.co/ZOzeer2dpR
Pretty sure that CaaStle would go down as the third-largest startup fraud ever, behind FTX and Theranos. New behind-the-scenes reporting: https://t.co/9OoNu1hCn3