Us ICO Tezoss investors will be able to claim a share of the $25 million that the company will pay as part of a settlement in a class action related to violations of securities laws.
Investors who participated
in the initial offering of Tezos tokens (XTZ) between July 1, 2017 and July 13, 2017, they were notified that they could claim a share of the $25 million that the company is likely to pay as part of a settlement in a class action related to violation of securities laws.
What will be the final settlement of the claim, will be known on August 27. According to the press release
law firm Black & Leviton, lawyers are starting to send notifications to ICO Tezoss investors who are entitled to a share of the funds that will be paid as part of the settlement. Investors are encouraged to visit the TezosFoundationSettlement website to submit a claim.
Terms of settlement of the case were offered
On March 20, the Tezos Foundation, which claims that the move “is in the best interests of the Tezos project and the community as a whole” due to the costs associated with continuing litigation. Despite the proposed settlement, the Tezos Foundation denies any wrongdoing, claiming the lawsuit is “baseless.”
A lawsuit was filed against the Tezos Foundation
by the law firm Block & Leviton in late 2017. The complaint alleged that the Fund illegally raised ETH equivalent to $232 million as part of an unregistered securities offering.
At a hearing on April 30 this year, judge Richard Seeborg gave preliminary consent to the settlement of the court case. This step will also help Tezoss avoid the risk that the ICO conducted by the Fund will be recognized as an unregistered securities offer, which may result in a fine of up to $150 million. Investors have until August 6 to file a complaint against the settlement.
Recall that in 2018, the Federal court of California rejected
an attempt to change the defendants in a class action claiming that the initial token offering (ICO) carried out by the Tezos Foundation violated US securities laws. Then the judge decided that the creators of Tezos and DLS will stand trial.
In addition, in the summer of 2018, Tezos Foundation unexpectedly announced that it would conduct a review of all customers who purchased tokens during the project’s ICO in July 2017 in accordance with the KYC/AML rules.