Investors who took part in Tezos $232 million initial coin offering (ICO) in 2017 ago may be able to recover their funds. This is after Tezos agreed to a $25 million settlement to a class-action lawsuit launched in November 2017. Investors will have to submit their claims before the October 16 deadline.
Tezos has been embroiled in legal battles ever since it raised $232 million in under two weeks three years ago. Its ICO, which took place from July 1-13 in 2017, set a new record for funds raised by a blockchain company.
Now, investors in the ICO may finally recover their funds. According to Boston-based law firm Block & Leviton, a California court has received a proposal for settlement by the Tezos Foundation. In its press release, the law firm claimed that if approved, the settlement will resolve all the claims in the class-action lawsuit.
Investors who object to the settlement have until August 6 to present their objections to the court. Those who wish to receive compensation have until October 16 to submit their claims. They are advised to visit www.TezosFoundationSettlement.com to lodge their claims.
The settlement will be subject to a final hearing on August 27 in a California court where the judge will decide if its “fair, reasonable, and adequate.” The judge will also decide whether the case will be dismissed with prejudice against Tezos, as well as whether to approve an “application for an award of attorneys’ fees and expenses.”
Tezos has been engaged in court battles with its investors for years now. The project, launched by Arthur Breitman and his wife Kathleen, has been accused of offering an illegal ICO. This court battle has even dragged in renowned venture capitalist Tim Draper who was listed as a defendant. However, a U.S. court approved his motion to be dismissed as a defendant.
The Tezos Foundation has fought these allegations all along, claiming that the offering was legitimate. However, it has not been opposed to settling with the plaintiffs. The foundation stated in March that it would settle out of court with the plaintiffs, despite their “meritless lawsuit.”
It maintained its position, claiming that everything was by the book, but stated, “Lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.”
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.