The core of the conflict lies in the period immediately after Allman's death in May. As Ondo's CEO, sole director, and controlling shareholder, Nathan Allman's voting power was transferred to his estate. This meant the voting rights could not be exercised until his mother, Kathleen Allman, was officially appointed as the personal representative through Hawaii probate proceedings on June 26.
The lawsuit, brought by the Allman estate, claims that before probate was concluded, De Bode wrongfully asserted he automatically became CEO under Ondo's bylaws. It is alleged that De Bode then appointed himself as the company's sole director via a voting agreement and began implementing corporate actions, including hiring advisors, authorising performance grants, and attempting to add another director. The estate argues these actions were invalid, as the bylaws required board approval to fill the CEO vacancy.
After gaining the authority to vote the estate's shares, Kathleen Allman initially sought a collaborative transition, rather than immediately removing De Bode. However, the situation quickly escalated into a legal battle, with the estate seeking a court ruling on the rightful control of Ondo Finance and a halt to any extraordinary corporate actions until the dispute is settled.
In response to the lawsuit, Ian De Bode, CEO of Ondo Finance, stated in an emailed comment to CoinDesk: “Kathy Allman’s decision to file a lawsuit is regretful. This course of action is clearly not in the interests of the company, its stockholders, the team, or the Ondo ecosystem.” He added, “The board has worked diligently to engage constructively with the Allman estate to date and will continue to do so going forward. Importantly, Ms. Allman's claims are meritless, and that will come through clearly in court.”
The Delaware court filings, while revealing the nature of the dispute, have redacted both the specific size of Nathan Allman's voting stake and the cause of his death. The outcome of this legal battle will determine the future leadership and strategic direction of Ondo Finance, a key player in the rapidly evolving tokenised asset market.
