Untuckit Cofounder Faces $10 Million Securities Fraud Suit

Investors filed a $10 million securities fraud lawsuit against Untuckit cofounder Chris Riccobono on Tuesday in the United States District Court for the District of New Jersey. The suit stems from an investment Garage Strategic Partners made in the shirt brand in 2025. It arrives weeks after Randa Apparel & Accessories closed its purchase of Untuckit in early September.

Who are the defendants?

Garage Strategic Partners LLC, Shreyas Shah and Sweta filed the complaint against:

• Chris Riccobono, cofounder of Untuckit
• Bjorn Bengtsson, listed as owner/partner and chief merchandising officer
• Nick Gargiulo, former vice president of finance and chief operating officer
• Edward Volchko, chief financial officer
• Greatness Wins Inc.
• CCRJVR Lax LLC and other defendants

The complaint alleges securities fraud, fraudulent transfer under New Jersey and Delaware law, civil conspiracy, common law fraud and negligent misrepresentation. Reached on Tuesday, Riccobono had no comment.

What does the complaint allege happened?

Garage Strategic said it invested about $10 million through a stock purchase agreement in 2025. Before the deal, Riccobono allegedly told Garage Strategic members they would join Untuckit's board of advisers. He also assured them the funds would expand Untuckit's retail footprint, marketing and inventory, according to the complaint. Riccobono reportedly promised the money would fund Untuckit only, not Greatness Wins, an unrelated activewear company he cofounded with Derek Jeter and other high-profile athletes.

The complaint alleges the financial information Garage Strategic received before investing differed from the audited financial statement it obtained later. It also claims Riccobono redirected Untuckit employees, resources and designs to benefit Greatness Wins. The most concrete example: Greatness Wins opened a store roughly 100 yards from an Untuckit unit. The filing does not specify the location.

How does the Randa sale figure in?

The complaint references the roughly $250 million sales figure publicized when Untuckit was sold to Randa Apparel & Accessories in September. It says that number differs from the figures provided to Garage Strategic during the investment process. At the time of the sale, estimates placed Untuckit's sales between $200 million and $250 million. Randa paid an undisclosed amount.

The gap between investor-facing numbers and the publicized sale figure now sits at the center of the dispute. For brands raising capital through private placements, the case shows how audited statements obtained after closing can resurface in litigation.

What remedies are the investors seeking?

Garage Strategic is pursuing:

• Compensatory and punitive damages, to be determined at a jury trial
• An accounting
• A constructive trust over the assets of Greatness Wins and CCRJVR Lax
• Attorneys' fees and costs

What is the background?

Riccobono and Aaron Sanandres founded Untuckit in 2011 as a maker of men's shirts designed to be worn untucked. The brand expanded into a wide range of products for men and women before Randa acquired it at the beginning of September.

The plaintiffs allege the defendants sought to induce the investment through false representations and to place the company's assets beyond the reach of creditors. The case will now move through federal court in New Jersey, where discovery could surface the audited financials behind both the 2025 investment and the September sale to Randa.