The ongoing legal saga surrounding the began coming to light in late 2021, eventually exposing a massive Ponzi scheme that defrauded hundreds of investors of more than $100 million . Background: The 2021 Allegations
The defense argued that the secondary funding was necessary because Ferrum had stopped communicating for three months during the COVID-19 pandemic. With Ferrum unresponsive, the defendant sought bridge financing to keep the litigation alive—an action they claimed was reasonable under the implied covenant of good faith and fair dealing. ferrum capital lawsuit 2021