A group of plaintiffs has filed a lawsuit against three former associates, alleging efforts to take control of their venture capital firm.
The plaintiffs allege that under the leadership of Jie Chen since 2019, the Celtic House Entities have flourished into one of the most successful early-stage venture capital firms in North America. Mr. Chen's strategic investments in companies like GrubMarket and Uni Express Inc. have not only yielded substantial financial returns but also garnered him recognition as an influential figure in the global Chinese investment community.
The plaintiffs allege that a proposed restructuring plan by Chen led to actions by the defendants intended to take control of the firm. These actions allegedly included the illegal transfers of domain names associated with Celtic House Entities by accessing Mr. Chen's personal accounts without authorization; misappropriation of funds through unauthorized use of debit cards for personal expenses; spreading defamatory statements about Mr. Chen’s professional capabilities; and deceitfully removing him from board positions he held within portfolio companies like UniUni.
The plaintiffs assert that these actions constitute violations of multiple laws, including tortious interference with business relations and defamation. They seek immediate equitable relief to prevent further damage to their business interests and reputations. Specifically, they demand injunctive relief to halt ongoing illegal conduct by defendants and seek damages exceeding $75,000 as compensation for losses incurred due to defendants' alleged misconduct.
The plaintiffs are represented by the attorneys of Wilson Sonsini Goodrich & Rosati P.C. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-02163.