- Tezos has been facing some class-action lawsuits
- The network’s class-action lawsuits to be settled out of court
- The settlements will directly impact XTZ’s classification
Tezos News Today – according to reports, the Tezos Foundation will reach settlements for all of its class-action lawsuits. The Tezos network has faced some class-action lawsuits The cases concerned will be resolved. The issue of Tezos’s classification as a security, whether it’s ICO was conducted improperly or not, and whether the network misled investors will all be resolved as well.
This report comes at a time where uncertainty has become the order of the day for digital assets due to the widespread panic caused by the coronavirus. Tezos is overwhelmed by its class action lawsuits and chose the easy way out by reaching settlements with the plaintiffs.
The Rise in Legal Costs Behind Tezos’ Decision to Settlement All Issues
Tezos’ reason for reaching an agreement for its lawsuits is due to the rise in legal costs. The Tezos Foundation has maintained that the class action lawsuits are “meritless. It “continued to deny any wrongdoing. Although, the foundation admits that these lawsuits have been a burden. As is the case with most class action lawsuits, it appears that some of those filed against the Tezos Foundation are “copycat” suits that make similar claims.
Per the original report, investors filed four lawsuits against the Tezos Blockchain in 2017. Despite being overwhelmed with these legal cases, some court rulings have been settled in Tezos’ favor. Californian courts have dismissed two separate cases against Tezos in 2019. Presumably, these dismissals will help discourage any future lawsuits against the Blockchain network.
The Details of the Settlements Remain Uncertain
The details of the settlements remain uncertain at press time because the Tezos Foundation hasn’t settled the matter in court. For now, only a few key details are known. Though there are several class-action lawsuits against the foundation, it is still unclear the number of individuals who will file a claim against Tezos when the time comes to do so. According to the Tezos Foundation, the settlement costs are not yet known. The distribution plan is still yet to be determined.
Note that Tezos isn’t the only cryptocurrency offering that has had to face a class-action lawsuit. The resolution of these class action suits could potentially affect whether the crypto will be perceived as a security or not. This will likely influence whether exchanges and institutional investors regard the crypto as risky to deal with. Because the Tezos digital currency is one of the top ten cryptocurrencies, settling for its ongoing class-action lawsuits will not harm its reputation.