Jury Awards $10M to Atlanta Firm in Breach of Contract Suit Against Blockchain Company

News | May 1, 2024 By:

On Thursday, April 11, 2024, a jury for the U.S. District Court for the Northern District of Georgia ruled in favor of Atlanta-based financial services firm FT Global Capital in a breach of contract lawsuit against blockchain company Future Fintech Group.

The jury awarded FT Global $7.9 million in damages for unpaid commissions, along with over $1.7 million in pre-judgment interest and $360,000 in attorney’s fees. The lawsuit stemmed from a placement agent agreement between the two parties in which FT Global was supposed to receive a 10% fee for any capital raising deals set up with investors they provided to Future Fintech.

According to court documents, FT Global, an SEC-registered broker-dealer that raises capital for publicly traded American and Chinese companies, entered into an exclusive three-month agreement with New York-based Future Fintech to serve as a placement agent. Under the terms, FT Global would be compensated if Future Fintech, an e-commerce company that works with financial technology and blockchain according to its website, closed deals with investors FT Global introduced.

The agreement also included a 12-month trailing period where fees would still apply for any deals with those investors. FT Global argued they provided Future Fintech with over a dozen potential investors, two of whom purchased securities worth millions. However, Future Fintech did not pay the associated commission fees despite the closed deals.

FT Global then sued Future Fintech in January 2021 for breach of contract, breach of good faith, fraud, and attorney fees in Fulton County Superior Court. The case was later removed to federal court. FT Global claimed they were owed over $2.3 million in unpaid fees and interest.

After partially dismissing and partially upholding claims in responses to motions from both parties, the federal judge ruled there was enough evidence for the jury to determine if Future Fintech breached the agreement through its conduct. While Future Fintech argued FT Global never asked for investor names, and they had no obligation without a direct request, the jury sided with FT Global.

Please contact BlockTribune for access to a copy of this filing.