Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand

Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand

SUMMARY

The comments come a day after the law firm and its founder Sandeep Kapoor withdrew the lawsuit filed against Sequoia India and several media outlets

Sequoia India cut ties with Algo Legal in June 2022 after some ‘concerning incidents’ came to light, advising founders to go with AZB & Partners

The case was being heard by Judge MH Annayyaanavar, who refused to grant an interim gag order on the articles about the law firm and its founder

Marquee investment firm Sequoia Capital India said on Thursday (December 1) that Algo Legal’s withdrawal of the INR 1 Cr defamation suit was a ‘vindication’ of its stand.

“Sequoia India has maintained throughout that all steps taken by it were based on detailed reviews and in the best interests of portfolio companies and various stakeholders. The claim of defamation was incorrect, and the withdrawal of the case is a vindication of this stand,” Sequoia was quoted as saying in an ET report.

Sequoia India said the case was withdrawn before it filed its response, and it denied any out-of-court settlement with Algo Legal.

The comments come a day after the law firm and its founder Sandeep Kapoor withdrew the lawsuit filed against the venture capital firm and several media outlets.

After the case was withdrawn, an Algo Legal spokesperson said, “We have decided to withdraw the defamation suit filed by us against the wholly unsubstantiated allegations made against Algo Legal and Sandeep Kapoor by various media houses.” 

Algo Legal added that it decided to move forward, “instead of being dragged through endless legal proceedings and defending against allegations which continue to remain baseless, unsubstantiated and hollow.”

It is prudent to mention that the VC firm had tried to get the case thrown out in June

Sequoia India had stated in the court filings that the message that it had sent out to its portfolio companies is the right to freedom of speech, in a 19-page response. It added that its right to freedom of speech prevails over the plaintiff’s right of reputation since “the statement was issued without any malice and without any intention to defame.”

The case was heard by the Bengaluru City Civil and Sessions Judge MH Annayyaanavar, who refused to grant an interim gag order on the articles about the law firm and its founder.

Sequoia India cut ties with Algo Legal in June 2022 after an investigation at one of its portfolio companies. In an email sent to its portfolio companies, Sequoia India said that after some ‘concerning incidents’ came to light, it terminated all services being provided by Algo Legal and its related entities. Sequoia advised portfolio founders to inform AZB & Partners if Algo Legal or related entities had any dealings with their companies.

Soon after media reports surfaced about the email, Algo Legal and Sandeep Kapoor filed lawsuits against publications Hindustan Times, and Times Of India parent Bennett Coleman And Company Limited (BCCL), as well as Twitter India, Sequoia Capital India and John Doe (a general injunction that could apply to any citizen in India).

Algo Legal was founded in 2019 by Kapoor after a nine-year stint at Sequoia India. It was earlier alleged that Kapoor took advantage of his earlier position as a senior executive at the VC firm to pressure the portfolio companies to hire Algo Legal for their legal work.

The law firm denied the allegations made by Sequoia India, stating that such baseless allegations made by the VC firm hurt its business and reputation.

Per Inc42 reports, Algo Legal was the advisor for Sequoia India-led funding rounds including CRED’s unicorn round in 2021 and Trell’s $45 Mn Series A round in 2020. Algo was also the firm managing the legal aspects during Zilingo’s layoffs in 2020. Trell and Zilingo have since come under investigation for corporate governance lapses.

Step up your startup journey with BHASKAR! From resources to networking, BHASKAR connects Indian innovators with everything they need to succeed. Join today to access a platform built for innovation, growth, and community.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand-Inc42 Media
Sequoia India: Algo’s Withdrawal Of Case Vindication Of Our Stand-Inc42 Media
You’re in Good company