Fresh lawsuit accuses EOS of misleading investors

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Investors have filed a class-action lawsuit against EOS developer Block.one as well as early partners and advisors of Block.one. This lawsuit comes on the heels of the $24 million settlement that EOS had to pay the U.S. Securities and Exchange Commission (SEC) over its unregistered initial coin offering (ICO). 

The lawsuit

Crypto Assets Opportunity Fund LLC, along with lead plaintiff Johnny Hong, have filed a class-action lawsuit against Block.one, along with Block.one CEO Brendan Blumer, CTO Daniel Larima, previous Block.one partner Ian Grigg, and previous Block.one advisor Brock Pierce.

The plaintiffs claim that Block.one purposefully provided investors with false and misleading information about EOS to draw more investors and funds to their unregistered securities sale. 

“To drive the demand for and increase profit from the sales of EOS Securities, Defendants further violated the securities laws by making materially false and misleading statements about EOS, which artificially inflated the prices for the EOS Securities and damaged unsuspecting investors,” according to the complaint.

The plaintiffs said the Block.one team falsely advertised the EOS project to increase the price of EOS.

EOS raised over $4 billion in its 2017 ICO. That being said, the $24 million settlement money that they had to pay the SEC is just a blip on the radar when you consider the total amount of money EOS initially raised. It is doubtful that any lawsuit for any amount of money will significantly affect a company that raised billions of dollars unless the lawsuit against them is worth billions of dollars as well.