Litigation Boutique Settles Dispute with Former Partner Over Crypto Payout
Litigation Boutique Settles Crypto Dispute with Former Partner Ahead of Trial
A high-profile litigation boutique known for its cryptocurrency lawsuits has settled a contentious dispute with one of its founding partners just before the case was set to go to trial. The law firm Freedman Normand Friedland and its former partner Jason Cyrulnik reached a settlement, bringing an end to a legal battle over Cyrulnik’s departure from the firm amidst a significant cryptocurrency payout.
The parties filed a joint stipulation in Manhattan federal court, dismissing all claims against each other and resolving the case that was scheduled to begin trial on July 8. The dispute centered around competing claims made by the firm, formerly known as Roche Cyrulnik Freedman, and Cyrulnik, who now chairs his own firm, Cyrulnik Fattaruso.
Freedman Normand Friedland had alleged that it terminated Cyrulnik due to his abusive behavior and sought a declaration that it had lawfully done so under the terms of a memorandum of understanding created upon the firm’s formation. On the other hand, Cyrulnik claimed that his partners ousted him in order to seize his share of a valuable crypto asset the firm had received in exchange for legal services provided to the blockchain startup Ava Labs. The value of the Ava Labs token, AVAX, had surged in the months leading up to Cyrulnik’s departure, reaching approximately $130 million at one point.
Randy Mastro, a partner at King & Spalding representing the Freedman firm and its partners, announced that a confidential settlement had been reached, putting an end to all claims between the parties. Mastro expressed the firm’s satisfaction in moving past the dispute and focusing on their thriving practice.
Marc Kasowitz, a partner at Kasowitz Benson Torres who represented Cyrulnik, did not immediately respond to requests for comment on the settlement.
The law firm Roche Cyrulnik Freedman was established in 2019 by a group that included former members of Boies Schiller Flexner. Another founder, Kyle Roche, was ousted from the firm in 2022 after recordings surfaced in which he discussed targeting competitors of a blockchain developer through litigation. Additionally, the firm was removed from representing plaintiffs in a class action lawsuit against the crypto exchange Bitfinex and Tether, the issuer of the USDT stablecoin.
The case, Roche Freedman LLP v. Cyrulnik, has now been resolved with the settlement agreement, bringing an end to the legal battle between the parties.