The United States investors in the Tezos ICO back in 2017 are likely to be compensated in a settlement that would total $25 million. They are now encouraged to submit their claims by October 16 and all of them who participated in the Tezos (XTZ) initial coin offering between July 1 and July 13 (2017) have been notified that they may be eligible for a share of the proposed $25 million settlement to an ongoing class-action lawsuit alleging securities violations.
What may comprise the Tezos ICO case and the final settlement hearing is set to take place on August 27. The event would determine whether the settlement and proposed plan of allocation will be approved as “fair and reasonable” and whether the attorney fees will be awarded as part of this agreement.
A release on Monday shows that the firm behind this lawsuit, Block & Leviton, is now seeking to notify qualifying investors that they may be eligible for receiving a share of the settlement. In that manner, all Tezos ICO 2017 investors from the US are now instructed to visit www.TezosFoundationSettlement.com and submit a claim.
This settlement was proposed on March 20 by the Tezos Foundation, which asserted that this move “is in the best interest of the Tezos project and community as a whole” due to the expense and the time associated with continuing to fight this case.
The Tezos Foundation, however, denied any wrongdoing and was quoted in the crypto news saying that the lawsuit is “meritless.” However, the lawsuit was first filed in November 2017 by the Block & Leviton law firm with a complaint alleging that the Tezos Foundation illegally raised $232 million worth of Ether (ETH) in an unregistered securities offering.
The April 30 hearing saw the United States District Judge Richard Seeborg granting preliminary approval for the settlement and writing:
“The court will likely be able to approve the settlement, subject to further consideration at the Settlement Hearing.”
The settlement would also avoid Tezos risking the Tezos ICO being named a securities offering – something that could incur a fine of up to $150 million. The United States investors now have until August 6 to object to this settlement and until October 16 to submit a claim.
Meanwhile, the other Tezos news show that XTZ is trading at $2.86 with a 1.85% decline on the day.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]