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Key Takeaways
- Nathan Allman’s half-sister and an Ondo investor petitioned for a conservatorship over Kathleen Allman’s share of the estate, citing cognitive impairment allegations she denies.
- Kathleen Allman separately sued acting CEO Ian De Bode over a disputed $11 million compensation package she alleges was arranged within a week of her son’s death.
- Kathleen Allman called the conservatorship petition baseless and linked it to her earlier dispute with De Bode, saying she remains focused on Ondo’s long-term success.
The legal battle over control of Ondo Finance has expanded beyond a dispute with the company’s acting chief executive into a fight within the family of its late founder.
Nathan Allman’s half-sister, Dr. Lani Clinton, and Ondo investor David Chen have petitioned a Hawaiian court to establish a limited conservatorship over the share of Allman’s estate held by his 77-year-old mother, Kathleen Allman, citing allegations of cognitive impairment and financial mismanagement that she denies.
A Company Without a Clear Successor
Allman died suddenly and without a will in May at age 32, leaving his estate, including his stake in Ondo Finance, unresolved. A probate court later named his parents, Kathleen Allman and Lawrence Allman, as his inheritors.
Their share of the estate includes a controlling equity interest in Ondo Finance and a substantial holding of ONDO tokens, some already unlocked and others scheduled to unlock over the next three years.
Ian De Bode took over as acting chief executive following Allman’s death. Kathleen Allman subsequently appointed herself and another of her children, Tahnee Towill, to Ondo’s board, named herself chair and interim CEO, and attempted to remove De Bode from his positions at the company.
He remains acting CEO and a board member as of a September 3 court order. Ondo Finance declined to comment for this story, and a request for comment sent directly to De Bode went unanswered.
Allman’s Estate Sues Over Compensation Package
Kathleen Allman filed suit against De Bode, accusing him of improperly seizing corporate control and alleging he began arranging a new $11 million compensation package within a week of her son’s death.
The suit seeks to void the appointments of De Bode and Chen, an early Ondo backer De Bode sought to add to the board, and to nullify the disputed compensation awards.
According to the complaint, De Bode’s proposed package included a $900,000 annual salary and bonus, a $1 million signing bonus and restricted token units valued at more than $9 million. Also included were equity awards that would have raised his stake in the company roughly 24-fold, from 0.33% to 8%.
Vesting on those awards was set to begin the day after Allman’s death. The estate’s complaint characterized the sequence of events as a dramatic and rapid consolidation of power.
Family Members Raise Competency Concerns
The Hawaii petition filed by Clinton and Chen questions Kathleen Allman’s capacity to manage her share of the estate. Clinton, a professor of medicine at Duke University, told the court her mother has a long-standing alcohol use disorder. This, together with a progressive impairment of judgment and cognitive function that she said leaves her unable to manage assets of this scale.
The petition asks the court to review Kathleen Allman’s medical records and evaluate her for a specific form of dementia, citing a pattern of behavior Clinton said was consistent with that diagnosis.
Clinton’s filing also describes a rift with her mother dating to 2022, following an incident during a family vacation that Clinton characterized as involving hostile remarks toward her young children. Kathleen Allman has denied making the remarks described in the filing.
Kathleen Allman Denies the Allegations
In a statement provided through her lawyers, Kathleen Allman called the petition’s allegations baseless and framed the filing as connected to the earlier dispute with De Bode.
“We are confident that this latest action will similarly fail.”
Her statement said the Hawaii petition was filed by an associate of De Bode following an earlier ruling against him in the Delaware Court of Chancery, and that she intends to continue focusing on Ondo’s long-term success.
Filings Describe a Pattern of Spending
The court filings also describe what Clinton and Chen characterized as a pattern of spending beyond Kathleen Allman’s own financial means, including a $18.5 million beachfront home in Honolulu that Allman purchased for his parents in June 2025.
The petition alleges a history of financial strain despite that spending, including an instance in which Kathleen Allman was unable to cover a mortgage payment and borrowed from a family member.
The filings also describe attempted or completed purchases including a yacht priced at roughly $4 million and private air travel. They also detail a text message Kathleen Allman sent to Chen nine days after her son’s death referencing concerns about cash flow alongside a roughly $200,000 invoice for pool construction and continued interest in the yacht purchase.
