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Builder.ai collapsed after beating money into Israeli private intelligence attire, a well-known crisis communication specialist and one of the world’s most feared litigation law firms.
The leading US holding company for Microsoft-backed startup filed for bankruptcy in Delaware on Monday, revealing outstanding invoices and obligations to creditors, from key customers to major tech companies such as Amazon and Microsoft.
The creditor list also includes: Quinn Emmanuel of the US Litigation Law Firm. Citrick Group, a Los Angeles-based public relations company, specializes in what is called “crisis communication.”
All three companies were hired last year after Financial Times reported that co-founders of Builder.ai, including CEO Sachin Dev Duggal, were caught up in a criminal investigation in India, according to people with first-hand knowledge of the matter.
FT also reported on a series of other legal disputes faced by Duggal, the self-proclaimed “Chief Wizard” of Builder.ai in his career.
Duggal has denied any misconduct in connection with these issues, and his lawyers have previously argued that he is merely a witness in Indian cases.
Builder.ai collapsed last month, and after internal investigations found evidence of possible fake sales, the revenue reported under Duggal’s watch was revised to a quarter of previous estimates. At the time, Builder.ai declined to comment, adding that it “focuses on maintaining orderly rewinding and value for employees.”
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Quinn Emanuel wrote to FT last year on behalf of Builder.ai and Duggal, claiming potential trust violations in the process of reporting papers on customer relationships for high-tech companies.
The US litigation specialist is one of the go-to companies for large corporations and well-known individuals caught up in legal disputes. Their partner’s business cards and emails often convey the strapline “the world’s most feared law firm.”
Mike Sitrick, founder of the same-named public relations company Sitrick and Company, also contacted FT on behalf of Builder.ai last year, raising concerns about the newspaper’s reporting process. He is widely sought after by critical communication specialists.
Shibumi was founded by Israeli corporate spy experts Ori Gur-Ari and Saphia Fenton. Shibuya promotes the use of previous spies drawn from the country’s intelligence agency to solve the troublesome issues of its extremely abundant clients.
Shibumi was also involved in a prominent spy scandal in 2022. This revealed that the Financial Times controversial financial operator Lars Windhorst hired an Israeli company to target German football bosses.
Both Windhorst and Shibumi initially denied knowledge of alleged smear campaigns at Hertha Berlin, but an internal investigation at the club found that the campaign bills were paid from Windhorst’s “attributed” bank account.
A German investor told the FT in an interview last year that he “has a good reason to ask experts to help me investigate.”
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The US holding company of Builder.ai filed for Chapter 7 bankruptcy protection in Delaware on Monday.
The US Bankruptcy Court is well-known and transparent, and the company has revealed it has more than 200 creditors. Builder.ai listed liabilities of up to $100 million and assets of less than $10 million, according to court filings.
The bankruptcy filing also lists American corporate intelligence company T&M USA as a creditor. The T&M website states that “it will help clients overcome legal, reputation and business challenges to become safer and more resilient.”
The senior former builder employee said, “Working with international professional advisors is completely normal practice for multi-billion dollar technology companies operating in multiple jurisdictions.”
Duggal, Quinn Emanuel and Sitrick declined to comment. Contacted by phone, Gur-Ari did not comment. He did not respond to a follow-up request for email comments. Builder.ai, Fenton, and T&M did not immediately respond to requests for comment.
