Crypto wallet firm Exodus sues W3C and its CEO Garth Howat, seeking to compel $175M acquisition
A lawsuit in the Delaware Court of Chancery seeks to compel Howat to comply with obligations under the November 24, 2025 Stock Purchase Agreement.
What to know:
- Howat and W3C accepted $80 million worth of loans from Exodus upon signing the deal, with $10 million given to Howat personally, who then declared that they did not need to repay these loans, said the lawsuit.
- Howat and company attempted to pilfer millions of dollars from one of their own subsidiaries, the lawsuit claims.
Howat and W3C accepted $80 million worth of loans from Exodus upon signing the deal, with $10 million given to Howat personally, who then declared that they did not need to repay these loans, according to the lawsuit.
“Defendants Garth Howat and W3C are engaged in a blatant, reckless, and improper campaign to escape closing a transaction for the sale of W3C to Exodus that they had promised to complete in a binding agreement,” the lawsuit states.
“They have attempted to pilfer millions of dollars from one of their own subsidiaries. They have falsely backdated documents filed with government authorities. They have purported to summarily dismiss entire boards of directors, as well as the CEO and CFO of their key operating entity, and replace them with lackeys of their choosing, despite being precluded from doing so by the binding agreement,” it said.
