LemVega sues ex-contractors over defamation, $70M in damages
The Puerto Rico-based investment firm alleges reputational harm and client losses.
LemVega Capital LLC and its CEO, Caroline Farah Lembck, have filed a civil lawsuit in the San Juan Superior Court against former contractors Kiavash Kazemian and Michael Thomas Kelly, alleging breach of contract, defamation, harassment and damages totaling $70 million.
According to the complaint, LemVega entered into independent contractor agreements with Kazemian in April 2024 and Kelly in June 2024. Both agreements were terminated by the end of July. During their tenure, the defendants allegedly had access to proprietary financial strategies, client information and confidential communications.
Following their departure, LemVega claims that both individuals engaged in a campaign of defamation and harassment targeting Lembck and the firm.
The lawsuit alleges that Kelly made false claims, including accusations of misconduct involving the U.S. Securities and Exchange Commission, and used disparaging language on email and social media. Kazemian is accused of contacting Lembck’s mother under false pretenses, which the company says caused additional distress.
“These malicious and defamatory actions have caused significant damage to the image and reputation of the plaintiffs,” the lawsuit states. LemVega alleges that the conduct disrupted internal operations and led to the loss of client relationships and business partnerships.
The complaint further states that Kazemian’s actions while managing client accounts resulted in the loss of approximately $300 million in assets under management. Although the firm references this amount as the extent of the harm, the formal damages request is for $70 million.
LemVega is also seeking preliminary and permanent injunctions barring the defendants from contacting clients, business partners or affiliated personnel, and from making further defamatory remarks.
The company notes that both contractors signed nondisparagement and confidentiality clauses, and that cease-and-desist letters were issued but not followed. Lembck has also filed separate complaints under Puerto Rico Act 284, which resulted in a protective order against Kelly in November 2024.
The case was recently transferred to the U.S. District Court for the District of Puerto Rico.
LemVega’s recent activity
The legal action comes amid continued growth for LemVega. In June 2023, the firm launched its Biotech Venture Fund III, focused on early-stage biotech ventures in areas such as gene therapy and bioengineering, as News is my Business reported.
In July 2023, LemVega acquired Toronto-based Peak Capital and introduced two additional funds: the LemVega Capital Collectibles Fund IV and the LemVega Capital Crypto Fund V, aimed at alternative investments including fine art and digital assets.
Co-founders Lembck and Asmita Kulkarni have emphasized their commitment to supporting underrepresented entrepreneurs and fostering inclusive innovation.
