NEW YORK – Carta, a startup company specializing in financial technology, found itself embroiled in a legal dispute with its former chief technical officer, Jerry Talton. Talton filed a lawsuit in the Southern District of New York, alleging retaliation and defamation by Carta’s CEO Henry Ward. The lawsuit reveals explosive allegations, including claims that Ward encouraged the misuse of customer data, deceived employees about equity compensation, and engaged in favoritism with acquisitions. Carta declined to comment on the lawsuit, and Talton’s lawyer followed suit.
The specific details of many of the allegations have been redacted at Carta’s request. However, the lawsuit also accuses Ward of burying complaints of sexual harassment and discrimination within the company. It describes a conversation between Ward and the company’s compliance chief, Suzanne Elovic, in which Ward asserted his authority over the company and allegedly said, “I am the Company!” Elovic was subsequently fired after objecting to Ward’s promotion of an executive with multiple harassment and discrimination complaints against him.
Talton’s lawsuit against Carta includes a defamation claim stemming from the company’s initial lawsuit, which included sexually explicit text messages from Talton’s personal iCloud account. Although Carta has removed those allegations and messages from its lawsuit, Ward has continued to publicize them on social media platforms. Talton argues that this has made it difficult for him to find employment, with at least one employer retracting a job offer after the accusations became public.
This latest legal battle emerges on the heels of Carta shutting down its secondary trading business due to allegations of misusing customer data. The company’s CEO initially responded confrontationally to the customer who raised concerns, but later issued a statement acknowledging the failure and disappointment of the business closure. The move effectively dashes Ward’s ambitions to create a “Nasdaq for private markets” with the support of significant investments.
In conclusion, Carta finds itself in a legal quagmire with its former chief technical officer, Jerry Talton, who has filed a lawsuit accusing the company’s CEO, Henry Ward, of retaliation and defamation. The lawsuit reveals alarming allegations of misconduct, including the misuse of customer data and favoritism in acquisitions. Carta has declined to comment on the allegations, and Talton’s lawyer has also refrained from making a statement. This legal clash comes shortly after Carta closed its secondary trading business amid accusations of data misuse. Ward’s dream of creating a “Nasdaq for private markets” is shattered as the company faces legal challenges and reputational damage.