In the Media

Fintech Startup Carta Embroiled in Legal Drama With Former CTO (Bloomberg)

Extract:

Financial technology startup Carta was hit with a fiery lawsuit by its former chief technology officer, adding to an already chaotic month for the company.

Ex-CTO Jerry Talton accused Chief Executive Officer Henry Ward in a suit filed Friday of misusing Carta resources and called Ward “charismatic, but insecure and narcissistic,” also comparing him to Don Corleone from The Godfather.

The filing in Manhattan federal court came in response to an earlier suit by Carta accusing Talton of secretly recording conversations with executives, among other claims.

In his countersuit, Talton said his firing and Carta’s claims against him were retaliation for bringing his concerns about the company to its board.

Carta has stirred an unusual level of drama for a financial software company. Thousands of Silicon Valley startups rely on its services helping to manage investor information, or cap tables. But earlier this month, a customer publicly complained that Carta misused that information to gin up business for its secondary markets division, sparking widespread outrage in the tech world.