Investor Sues Former Flipcause Executive Chairman Over $1.15 Million Loan Guarantee
One of Flipcause’s largest investors is seeking at least $1.15 million from the company’s former executive chairman, Emerson Ravyn, claiming he personally guaranteed a loan that remains unpaid.
Grand Avenue Advisors, a private equity firm, filed a lawsuit against Ravyn on Jan. 27 in the New York Supreme Court, Kings County. According to the complaint, Ravyn “absolutely and unconditionally” guaranteed a promissory note issued to Flipcause.
The lawsuit comes as Flipcause’s bankruptcy proceedings move toward liquidation. Earlier this month, court-appointed trustee Jeffrey Testa asked a federal judge to convert the company’s Chapter 11 case to Chapter 7, citing a lack of revenue and mounting administrative expenses.
As part of a proposed settlement in the bankruptcy case, Grand Avenue agreed to assign its claims against Ravyn to the bankruptcy estate.
Co-founder Allegedly Guaranteed Loan
According to bankruptcy filings, Grand Avenue Investments LP – Series 14B, an investment partnership owned by New Jersey-based Grand Avenue Advisors, loaned Flipcause $600,000 in August 2023.
Flipcause was scheduled to begin monthly repayments in August 2025 but failed to make payments in August, September, and October, the lawsuit alleges.
After the missed payments, Grand Avenue accelerated the debt and demanded full repayment of the principal and accrued interest on Oct. 24, 2025. The firm claims it is owed at least $1,155,290.35.
The complaint argues that Ravyn breached his personal guarantee by failing to satisfy the debt after Flipcause defaulted.
Flipcause filed for Chapter 11 bankruptcy protection on Dec. 19, 2025. Court filings showed the company owed nearly $29 million to more than 3,200 nonprofit organizations nationwide. While bankruptcy generally halts legal actions against a debtor company, creditors may still pursue individuals who personally guaranteed company obligations.
Bankruptcy records also revealed that Flipcause executives, including Ravyn, received more than $3.8 million in payments before the bankruptcy filing.
First Personal Lawsuit Against Flipcause Executive
Flipcause, a Delaware corporation formerly headquartered in Oakland, is not named as a defendant in the New York lawsuit.
The case appears to be the first personal legal action filed against Ravyn or any other Flipcause executive since the company entered bankruptcy.
Court records indicate that Ravyn also personally guaranteed two additional loans in August 2023: a $100,000 loan from Firmage Investments and a $50,000 loan from Willden Properties.
According to court filings, process servers attempted to deliver the lawsuit papers to Ravyn’s Brooklyn residence on March 18. After Ravyn allegedly declined to allow them upstairs, the documents were left with a building doorman.
Ravyn has 30 days to respond to the complaint. Failure to do so could result in a default judgment in favor of Grand Avenue.
Neither Ravyn nor representatives of Grand Avenue Advisors, including the firm’s attorney, responded to requests for comment.