Who has had something similar happen to them?

Good morning fellow savages,

TL:DR - Juicy legal fiasco bars me from growing my biggest account. Has something similar happened to any of you?

I work as an AM in what can be considered a 'partner' channel. Juicy little drama I thought I'd share with you all.

Client X is my client. X leaves firm Y. Y is a client of my colleague.

X sends me a list of customers to transfer to his new firm, from Y.

Due to the amount of customers involved, I go through the required steps internally. Something, for some reason, feels fishy.

Y is completely ghosting, and uncooperative. We need Y's consent to complete transfer to X.

Months later and Y finally answers, barking that I am "X was fired from Y, started an illegal company under their banner - bans me from speaking with X, from forwarding emails between Y and myself". CC's their lawyer (lolz).

X tells me that Y is actually being accused of fraud. I do some digging around, and confirm this - two active lawsuits against Y.

Sadly though, due to internal process, because Y said they were not in agreement, this transfer cannot go through.

X is a key client of mine, and has essentially been blocked from working with a large customer base because of this. This is my biggest account and for now growth is stalled because my legal team is involved.

Anything similar happen to any of y'all?