Sequoia Capital India has asked a local court to dismiss a defamation suit filed by one of its former general counsels, saying it was an attempt to curtail its free speech rights and harm the interests of the venture. The capital shows the firm’s court filings.
Sequoia has been locked in a legal battle with Sandeep Kapoor after he involved the company in a defamation suit against media companies, which was reported on a leaked Sequoia email dated June 2. Mr. Kapoor was Sequoia’s in-house general counselor for nearly nine years. 2019
The lawsuit is the latest in a series of troubles for Sequoia, with the company grappling with complaints from startups about trust damaged after high-profile governance scandals at some of its portfolio companies in India and Southeast Asia.
Mr Kapoor’s firm, Algo Legal, said in a press statement and in its lawsuit that Sequoia sent an email to its portfolio companies this month that made baseless references to the law firm “about the details” that its Hurt business and reputation.
Sequoia denied the allegations in a 19-page court filing in India’s tech hub Bengaluru on June 18, calling the lawsuit “frivolous and annoying” and saying it was obliged to notify its portfolio companies if certain irregularities were detected. was.
An independent investigation into Zilingo, a Sequoia Capital-backed fashion startup in Singapore, found that certain payments made to Algo and its related entities were “not in accordance with the terms/contracts of the engagement”, prompting Sequoia to keep its portfolio companies from dealing with the law. Forced to caution. Firm, court filing states.
Sequoia’s filing, seen Reutershas not been made public.
A spokesman for Algo and Mr. Kapoor said on Sunday that they told the court on Saturday that the investigation into Zilingo’s cases was ongoing and no final findings had been reached, and that Sequoia’s allegations in the filing were without merit.
Detailing the findings of the Zilingo investigation for the first time, Sequoia said it found the fashion startup paid more than $6 million to Algo and its related entities between 2020 and 2022.
In such circumstances, Sequoia said, “the right to freedom of expression prevails over the plaintiff’s right to reputation because the statement was issued without malice and without intent to defame.”
Sequoia was Algo’s top client in Billings, but the US venture capital firm ended its association with Algo in January. Sequoia declined to comment when he appeared in court on Sunday.
The Bengaluru court will next hear the matter on June 29.
Zilingo in April suspended its 30-year-old CEO and cofounder Ankiti Bose, a former Sequoia analyst, over suspected financial irregularities. Bose was subsequently sacked for what he said was a wrongful termination.
Zilingo and Ms Bose did not immediately respond to a request for comment on Sunday.
Ms Bose’s removal, Zilingo had previously said, follows an independent investigation into complaints the startup described as “serious financial irregularities”.