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Securities

Jul. 7, 2026

Delaware judge clears way for investors' fraud suit against Ballmer, Baker Hostetler

A Delaware bankruptcy judge ruled that fraud claims brought by carbon offset startup investors against Steve Ballmer, Baker Hostetler and others belong to the investors--not the bankrupt estate--allowing a high-profile California lawsuit over the failed carbon-offset startup to proceed.

Delaware judge clears way for investors' fraud suit against Ballmer, Baker Hostetler
Miller

A Delaware bankruptcy judge has cleared the way for investors in the collapsed carbon-offset startup Catona to pursue fraud claims against Los Angeles Clippers owner Steve Ballmer, Baker Hostetler LLP and others, rejecting the Chapter 7 trustee's attempt to take control of the litigation.

In a 17-page memorandum opinion issued June 30, U.S. Bankruptcy Judge Thomas M. Horan ruled that the claims asserted in a pending Los Angeles Superior Court lawsuit belong to the individual i...

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