Cyber-fraud-prevention startup NS8 Inc. filed for bankruptcy protection yesterday after its former chief executive was arrested on fraud charges last month and an investor put up $10 million to finance a litigation campaign over the company’s sudden collapse, WSJ Pro Bankruptcy reported. Las Vegas-based NS8 said that it would use the chapter 11 process to stave off a cash crunch while launching lawsuits against founder and former Chief Executive Adam Rogas and others who collected money from the company before it went under. Investment firm Invictus Global Management LLC has extended a loan to finance the planned litigation, aimed at recovering lost funds for victims of the alleged fraud that brought down NS8.
