Megan Rose Dickey 10:41 AM PST • January 15, 2019
Getaround is getting around the courthouse. One of the car-sharing startup’s early investors, Geoffrey Shmigelsky, is suing the company, alleging fraud and unfair conduct.
“Our client supported Getaround and Mr. Zaid from the very start, only to be swindled out of $1.785 million that went straight into the pockets of Mr. Zaid’s family and friends, as we allege,” Gaw | Poe LLP Partner Samuel Song said in a statement. “Our client deserved better than this from a person he had supported and trusted for years, and we’ll do what it takes to get what rightfully belongs to him.”
Getaround, however, says “these claims are totally unfounded and we’re looking to get the case dismissed,” Getaround Director of Marketing Communications Jacqueline Tanzella told TechCrunch over the phone.
Specifically, the lawsuit alleges Getaround executives tricked Shmigelsky into selling his shares to their friends and family for $1.79 million less “than what they knew they were worth.” Early last year, investors became interested in purchasing Shmigelsky’s shares, the lawsuit states. But because Getaround is still a private company with scarce public financial information, “they struggled to value Plaintiff’s shares.” That’s when Shmigelsky said he asked Getaround CEO Sam Zaid for the information.
