The embattled fashion startup Caastle accused its founder Christine Hunsicke of starting to face lawsuits from partners and suppliers for financial misconduct, involving missed payments and more allegations of fraud.

As Axios and TechCrunch saw first reports, Caastle was sued by P180, a company that invested in using Caastle Technology, and Exp Co, a clothing company that said it never paid after reaching a settlement to obtain a copyright infringement settlement.

Representative Castle did not immediately respond to TechCrunch's request for comment.

"Everything about Caastle is true," the P180 lawsuit claims that Castle tries to hide details of its revenue and financial stability from P180. "Then, among other things, fraudulently induces P180 to raise funds and take out multiple loans because they expect P180 to get viable assets, which is ultimately what P180 does in the end," the lawsuit said.

The lawsuit continues that the lawsuit continues because P180 believes it is misleading, and that "investors have complete control over the board." “The P180 lost more than $58 million and sought profits, contract revocation and corporate ties between itself and Castel.”

At the same time, EXP Topco is also suing. It claimed that Castle failed to pay a fine after reaching a settlement for alleged copyright infringement, violating the settlement agreement.

Axios also reported rumors about a class action lawsuit about an investment company that brought Caastle retail investors, although it did not report the investor's name. Axios first reported on Caastle's financial problems a month ago. The company's founder, Hunsicke, resigned from the board and resigned from the position of CEO when the company said it was investigating allegations of financial misconduct.

Axios further reported that the company is exploring bankruptcy and has secured $2.7 million in financing to help the process. Caastle raised more than $530 million in total, with its last round raising $43 million in 2019.

In April, the board confirmed to TechCrunch that its financial situation was so terrible that employees had to be addressed. If the entire $530 million disappears, it will be one of the biggest fraud cases in recent history. By comparison, student loan application startup Frank was purchased by JPMorgan for $175 million. Frank's founder Charlie Javice was found guilty last month.

TechCrunch spoke with two former employees who said they were not surprised to hear the company was in financial trouble, although they did not witness any alleged fraud.

A former employee who asked to remain anonymous does not remember the company holding the latest information about its financial condition or its performance. "I think everyone laughed and was like, 'Oh, we probably won't make money,'" the employee told TechCrunch.

When asked to respond to fraud charges, the man said: “I don’t think anyone would expect it.”