Two co-founders of an e-commerce startup have filed a legal malpractice action against Troutman Pepper Hamilton Sanders in New York state court, alleging $5 million in damages arising from conflicts of interest with the startup’s other founders.

The Sept. 4 action—a summons with notice—was filed in Manhattan Supreme Court by plaintiffs Jossef Kahlon, Julian Kahlon and their company TNJ Holdings. The plaintiffs have been litigating in a separate suit against Jane Gol and Amir Chaluts, the other co-founders of the e-commerce startup, Project Verte, over whether their business dispute claims should be decided in arbitration.

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