💥New Chapter 11 Bankruptcy - Joonko Diversity Inc.💥

AI-powered recruitment platform shuts down after alleged fraud.

On May 14, 2024, NY-based Joonko Diversity Inc. (“Joonko” or the “debtor”) filed a chapter 11 bankruptcy case in the District of Delaware (Judge Walrath). Prior to June ‘23 when it … wait for it … began winding down its operations, Joonko had been developing “…an AI-powered platform to help companies recruit diverse employees, utilizing machine learning to match qualified candidates from underrepresented communities with job opportunities.” Uh, ok. So, like, in an age where AI is popping up literally everywhere, “machine learning” is all the rage, and VCs/founders are tripping over themselves to expropriate Scarlett Johansson’s voice do something in AI, this AI company is shutting down and filing for bankruptcy?! There must be some sordid sh*t here, right?

RIGHT!

It seems this is a story of fraud (and possibly bad due diligence by venture investors)!