Private equity funds continue to bear the collateral consequences of FTX’s sudden collapse last November. The fallout from the collapse initially catalyzed regulatory scrutiny throughout federal and state agencies, principally from the Securities and Exchange Commission (SEC).

Kevin B. Frankel of McGuireWoods. Courtesy photo

Now, a wave of private plaintiffs’ lawsuits is cresting over the elite firms that funded FTX’s various business ventures. Looking around the corner, investors in those same firms will likely bring a new phase of litigation against private equity funds that put investor money into FTX deals, allegedly without adequate due diligence.

Molly White, partner at McGuireWoods. Courtesy Photo.