- Class action lawsuit against Tezos has ended after 3 years
- The 3-year long class-action lawsuit ended in $25M settlement
- Tezos was accused of violating securities laws during its 2017 ICO
Tezos News Today – Tezos has reported another good news after the network rounded up a class action lawsuit against it. After three years, the class-action lawsuit filed against Tezos (alleging that it violated securities laws during its 2017 ICO) has ended. The class-action lawsuit targeting Tezos concluded after Judge Seeborg ruled in favor of Tezos’ $25 million settlement. The settlement was reached on August 28. This report couldn’t have come at a better time for Tezos after clearing off another case of the table.
The Settlement Will be Shared Among the Individuals and Entities Who Participated in the ICO
According to the report, the agreement will the settlement funds distributed among everyone (individuals and entities) who took part in Tezos’ 2017 ICO (initial coin offering). The ICO lasted from July 1 to July 13, 2017. Those affected by the ICO sold their XTZ at a loss before November 25, 2019. Others eligible for the settlement include those who didn’t sell their tokens before November 25 (or those who are unable to access their tokens because of lost passwords).
All eligible parties must now file a claim if they want to get their share of the settlement. They must file their claim before October 16, 2020. Additionally, the plaintiffs’ counsel also received attorneys’ fees that are equivalent to one-third of the settlement. The defendants must pay no less than $203,000 for litigation expenses separately.
The Plaintiffs Will Relinquish Their Right to Make Future Claims Against Tezos
Finally, the $25 million settlement will exclude the case’s defendants. It will exclude individuals who held a position at the Tezos Foundation or held a position at a firm that had a “controlling interest” in Tezos’ offering. It will also exclude the family of Tezos’ founders. The settlement states that the plaintiffs will relinquish the right to make any future claims against Tezos (and other defendants).
The Judge described the settlement that was agreed as fair, reasonable, and adequate. He noted that the case consists of “cutting edge litigation” that tackled novel issues for the first time. Recall that the class-action lawsuit was filed against Tezos in December 2017. At the time a group of private individuals (plaintiffs) sued the Tezos Foundation and the founders of Tezos Kathleen and Arthur Breitman. The plaintiffs alleged that the 2017 ICO was an unlicensed securities offering.