US court has finally concluded long-running class-action lawsuit against Tezos regarding the 2017 ICO for $25 million settlement.
01 September, 2020 | AtoZ Markets – Tezos (XTZ) is one of the leading open-source platforms. The history of Tezos began in 2014 when co-founders Arthur Breitman and Kathleen Breitman began developing next-generation blockchains. In July 2017, The Tezos blockchain completed its Initial Coin Offering (ICO), bringing in record $232 million worth of Bitcoin and Ether.
However, in December 2017, a private plaintiffs group filed a lawsuit against Tezos and its founders, accusing the ICO as an unauthorized securities offering. According to the lawsuit, Tezos violated US securities laws because of its 2017 ICO.
Tezos Class Action Lawsuit Finally Come to a Conclusion
The three-year-long class-action lawsuit regarding Tezos 2017 ICO has settled for $25 million. The two sides had agreed to settle in March and are now approved by the federal judge. Tezos and its founders agreed to pay $25 million in cash to resolve the case. However, the settlement means the court has not ruled on whether Tezos’ ICO was an unregistered securities sale.
According to the ruling, the funds will be distributed to investors and entities who participated in the 2017 ICO. Neither the family of the founders of Tezos nor those holding certain positions in the company will receive any funding. The court ruling stated:
“The Court has determined that notice to the Settlement Class was adequate and sufficient. The court has found that the Plaintiffs’ Lead Counsel’s request for an award of attorneys’ fees and litigation expenses is fair, reasonable, and adequate.”
The court order also requires the defendant to separately pay approximately $203,000 of plaintiffs’ lawyer fees. As part of the settlement, plaintiffs have now waived their right to claim against any of the defendants. The parties can make claims under the proposed settlement until October 16.
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