The judge has partially denied Aptos Labs CEO Mohammed “Mo” Sheikh’s motion to dismiss a lawsuit filed by entrepreneur Shari Glaser, who claims she was defrauded of her capital as an early investor. According to a court transcript released Oct. 10, the court dismissed the fraud and three other lawsuits, while three other lawsuits were allowed, including breach of contract, unjust enrichment, and Glazer’s alleged right to 50% of Matonee’s parent company. Aptos Labs.

Aptos was founded by former Meta employees Mo Sheikh and Avery Ching. The founders were also involved in Mark Zuckerberg’s failed Diem project. Diem Association and its subsidiaries went out of business in February, and Meta sold intellectual property and other assets to the project.

In her ruling, Judge Jennifer Schecter stated that “there is no universe in which the complaint will be dismissed”, continuing:

“I simply do not see at this stage of the proceedings how I can legally find any evidence that completely disproves the existence of an enforceable agreement between these parties; and, of course, it cannot be that she at least did not have a claim to unjust enrichment.
However, the judge went on to dismiss a number of causes of action, stating:

“For the reasons I have stated, and after I have listened to the arguments and read the documents, I am going to dismiss claims other than those that I have indicated have potential teeth, points one, five and six. This is for breach of contract, unjust enrichment and his declarative decision in connection with the existence of the contract.”
In March, Glazer and her firm Swoon Capital filed a complaint against Matoni, alleging that the fraudulent scheme robbed her of her rightful stake in the partnership, in this case Shake’s 50% stake in the business. Glazer is seeking up to $1 billion in the lawsuit.

Aptos Labs viewed this decision as a positive development. A company representative told Cointelegraph:

“We are pleased with the court’s decision in which most of Glazer’s claims were dismissed in their entirety, despite the high legal standards at this stage of the trial, which require Glazer to be given almost every right to doubt and require her to accept Glazer’s claims at face value. “

Source: CoinTelegraph