A medical student association is suing Oakland-based Flipcause, Inc. claiming the fundraising platform has withheld more than $75,000 of the organization’s funds.
Editor’s Note: Parties interested in joining the lawsuit should directly contact the plaintiff’s attorneys, and not Oakland Voices.
The suit was filed Oct. 20 in the U.S. District Court for the Northern District of California on behalf of the Latino Medical Student Association-Northeast. Flipcause and its top executives “defrauded and systematically deprived nonprofit organizations of the very funds they raised for their charitable missions,” according to the complaint.
“Flipcause has harmed numerous nonprofit organizations by withholding their funds, and this harm is ultimately felt by the community members these organizations serve — from victims of domestic violence to future doctors training to save lives. We are committed to representing all organizations that have suffered as a result.”
The suit asks to be certified as a class action that would represent all U.S.-based non-profits, individuals and businesses who had accounts with Flipcause since November 2022. The lawsuit seeks damages of at least $5 million and suspects there are thousands of other affected nonprofits.
The company created a “financial nightmare” for thousands of charities that entrusted it with their donations, according to the suit.
“Flipcause has harmed numerous nonprofit organizations by withholding their funds, and this harm is ultimately felt by the community members these organizations serve — from victims of domestic violence to future doctors training to save lives,” said Juyoun Han and Eric Baum, part of lawyers the representing the plaintiffs. “We are committed to representing all organizations that have suffered as a result.”
The lawsuit cites Oakland Voices reporting that Flipcause is withholding money from dozens of other nonprofits. Multiple organizations have left the platform. The Better Business Bureau recently issued a warning to nonprofits about Flipcause’s “pattern of complaints.” Nonprofits have filed complaints with state attorney generals in California and New York. The total amount nonprofits have told Oakland Voices that Flipcause is withholding now tops $1 million.
Flipcause bills itself as a “one-stop platform” for nonprofit groups, and promises to transfer donations within one to five business days, according to the suit.
Flipcause has not responded to Oakland Voices’ repeated requests for comment.
Flipcause allegedly owes Latino Student Medical Association $75,000
The Latino Medical Student Association-Northeast (LMSA-NE) said Flipcause has withheld more than $75,000 of the organization’s funds. “This has materially harmed LMSA-NE’s mission, forcing it to drain its savings and jeopardizing its ability to host medical conferences for thousands of students.”
LMSA-NE started using Flipcause in 2018 and paid a 4.9% per transaction and a monthly subscription fee of $100. This past August, it requested two funds transfers totalling more than $75,000, which Flipcause never processed, according to the suit. When LMSA-NE attempted to close its account on Sept. 22, it expected to receive all its funds under Flipcause’s own contract, but did not, according to the suit.
“We have tried for several months to get our funds transferred from Flipcause and have been met
with vague reassurances and no clarity on the situation from their customer service team. This has derailed our mission as an organization and we seek to hold Flipcause accountable.”
Latino Medical Student Association-Northeast
The organization said it spent more than $1,400 switching to a new donor platform and rebuilding its website, which Flipcause previously provided. The delays disrupted services for students, confused donors, damaged relationships with partners and undermined their mission to support Latino students, according to the suit.
“We have tried for several months to get our funds transferred from Flipcause and have been met
with vague reassurances and no clarity on the situation from their customer service team,” LMSA-NE said in a statement through their attorneys. “This has derailed our mission as an organization and we seek to hold Flipcause accountable.”
Company accused of deception and instability
The lawsuit also names as co-defendants Flipcause founder and former CEO Emerson Valiao and current CEO Sean Wheeler. In September, Wheeler told users that the company was “healthy,” but the lawsuit alleges that Flipcause is “unstable, seeking to be acquired, and at this time unable or unwilling to transfer funds to account holders.”
As of Oct. 23, the company’s website was still active. Since last week, Flipcause’s staff page shows an error message.
Next steps: From lawsuit to class action
The next step in the lawsuit would be discovery. This includes requests for documents. The plaintiffs are seeking class certification, which means being recognized as a group of organizations similarly defrauded or misled by Flipcause. Certification could allow nonprofits nationwide to join the case and seek repayment for funds Flipcause allegedly withheld.
Eisenberg and Baum, LLP and the Buche Group filed suit on behalf of LMSA-NE. Similarly impacted organizations can contact the Eisenberg and Baum legal team.
The lawsuit, Latino Medical Student Association-Northeast v. Flipcause, Inc. et al., has case number 4:2025cv09047.
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