Investors filed a lawsuit against startup Tezos

Investors file a lawsuit against startup Tezos

A lawsuit, which could receive class action status, against the founders and promoters of blockchain startup Tezos was filed in California. Writes about this CoinDesk.

Recall that the conflict that broke out between the organizers of Tezos Arthur and Kathleen Brightman, on the one hand, and the head of the Tezos foundation, Johann Gevers, on the other, became known in October. The Brightmans accuse Gevers of using his own position for personal gain, and Gevers, in turn, claims that they are trying to eliminate him in order to seize control of the fund..

The internal conflict has become a matter of concern for investors who are wondering if Tezos’ final product will ever see the light of day. Tokens sold for a total of $ 232 million were never transferred to investors.

The suit was sent to the California Superior Court on October 25. A number of persons are listed as accused in it, including the Brightmans and Gevers. In addition to them, the Brightman company Dynamic Ledger Solutions, Inc., the Tezos fund and Strange Brew Strategies, the company that promoted Tezos before the start of the ICO campaign, were included in this list..

The lawsuit was filed by Taylor-Copeland Law on behalf of investors. She claims that the defendants in the sale of tokens violated the provisions of US securities law, namely, they sold securities without the necessary registration in such cases, engaged in securities fraud and were convicted of disseminating misleading information..

Brightman lawyer Brian Klein said his clients will actively defend their position.

Investors filed a lawsuit against startup Tezos

“This claim has no basis, and there is a number of proofs for that. Kathleen and Arthur Brightman are outstanding entrepreneurs and strategists. They will defend themselves fiercely. You shouldn’t have sued them, ”he said.

It is not yet clear how events will develop and whether the claim will be classified as a class action.
Lawyers believe that the case may drag on, regardless of the fate of Tezos itself. Securities law allegations and litigation could be detrimental to other ICOs.

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