US judge approves the settlement of $25 million brought by Tezos and concluded the lawsuit against the company from three years ago as we are reading further in the Tezos news today.
The three-year-long class action lawsuit against Tezos was launched for violating securities laws in the United States back in 2017 when the ICO came to an end after the US Judge Richard G. Seeborg approved the $25 million settlement. The company had little time to celebrate in 2017 when Tezos raised more than $230 million as the Boston-based law firm called Block & Leviton filed a class-action lawsuit on behalf of multiple investors.
The allegation read that Tezos violated California laws by selling unregistered XTZ tokens and there were two more cases by the end of the year in the Federal District Court in Florida. In mid-2018, the three cases were consolidated into one before the Northern District Court of California so right after the US Judge refused the motion to dismiss the lawsuit.
After the refusal, The Tezos Foundation filed for a settlement agreement back in March explaining that the organization has the best interest of the Tezos project and the community as a whole. The Foundation remained confident that the lawsuit was meritless and further denied wrongdoings. But, the lawsuits are expensive so it was decided that the one-time financial cost of the settlement was preferable to the distractions and costs associated with the further fights in courts.
The court granted preliminary approval of the settlements offered in May so the decision brought by Judge Seeberg was expected. The order indicated that the settlement will be distributed among all entities who participated in the 2017 ICO and sold their tokens before 2019 or those that we’re unable to access the coins for whatever reason. All parties have until October 16 2020 can file a claim to receive their respective share of the settlement. According to the Judge, the final agreement is “fair, adequate and reasonable” as well as his order forbids the plaintiffs to make any more claims against Tezos and the rest of the defendants. The counsel will receive one-third of the settlement funds as the fees hit over $200,000 of litigation expenses which the defendants will have to pay.
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