Block.One Settled For $27.5M In EOS Class-Action Lawsuit

Block.one settled for $27.5 million in an EOS class-action lawsuit as the company got fed up with the lawsuit over its EOS sale so let’s read more in our latest EOS news today.

Crypto assets Opportunity Fund (CAOF) and Block.one settled for $27.5 million and put an end to their legal battle to avoid distraction and the company agreed to pay in settlement to its EOS investors but the amount each claimant will get is not decided. Block. one is the crypto company behind EOSIO blockchain agreed to pay the class-action lawsuit over its $4 billion ICO for EOS and when the judge settles things up, Block. one has to pay out money to claimants that invested in the ICO. The company said:

“Block.one believes this lawsuit was without merit and filled with numerous inaccuracies. However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products.”

The settlement submitted for approval by the court and it concludes a class-action lawsuit filed on April 3, 2020, by William Zhang and Chase Williams so the investors filed the case on behalf of anyone who bought EOS between 2017 and 2019 with the settlement extending the date to May 2020. In May 2020, Crypto Assets Opportunity Fund and investor Johnny Hong filed a similar lawsuit and the court joined up the lawsuit back in August 2020 and appointed CAOF as lead plaintiff. CAOF alleged that Block.one misled the investors by selling unregistered securities and artificially inflated the price of EOS but Block.one denies these allegations.

After one year in court, CAOF and Block.one decided to settle and avoid costs and further distractions, and risks of further litigation. They informed the Court that a settlement was reached as per the court records published on June 11. In 2019, Block.one settled a lawsuit over its ICO with the SEC for $24 million. Even though they put a price tag on the settlement, Block.one and CAOF still disagree on the extent of liability and damages with the amount of money that will be recoverable. The court has to handle potential appeals before it delivers a verdict on how much each claimant is entitled to with the court saying that these investors who claim less than $10 will get nothing.