NEW YORK–(BUSINESS WIRE)–Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international firm specializing in securities and consumer rights litigation, announces that it has filed a class action lawsuit against defendants TerraForm Labs Pt. Ltd (“TFL”), Jump Crypto, Jump Trading LLC, Republic Capital, Republic Maximal LLC, Tribe Capital, DeFinance Capital, DeFinance Technologies, GSR/GSR Market Limited, Three Arrows Capital Pte. Ltd, TFL co-founder and CEO, Do Kwon, and its head of research, Nicholas Platias.
The action, which was filed in the United States District Court for the Northern District of California and captioned Patterson v. TerraForm Labs Pte Ltd. Et al., Case No. 3:22-cv-03600asserts rights under §§5, 12(a)(1) and 15 of the Securities Act of 1933 (the “Securities Act”), as well as under §§10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), on behalf of a class consisting of all persons and entities, other than defendants and their affiliates, who purchased so-called Terra Tokens from May 20, 2021 and May 25, 2022 inclusively (the “Class Period”), and who have suffered damages as a result. The lead plaintiff’s deadline in this action is August 19, 2022.
If you have purchased Terra Tokens including UST, LUNA, KRT, ANC, WHALE, ASTRO, APOLLO, XDEFI, MINE, aUST, vUST, MIR, mirror assets (e.g. mBTC, mETH, mVIXY, mTSLA, etc. ), Liquidity Pool tokens (ex. UST-mVIXY-LP, bLUNA-LUNA-LP, XDEFI-UST-LP, etc.) and/or Bond Assets (ex. bLUNA and bETH) between May 20, 2021 and May 25, 2022 inclusive, and have suffered material losses, whether realized or not, we encourage you to contact Scott+Scott’s attorney, Sean Masson (212) 519-0522, or by email at [email protected], for more information.
TFL is a company that operates the Terra blockchain and its associated protocol, which hosts, supports and funds a community of decentralized financial products and applications known collectively as the Terra ecosystem.
The Complaint alleges that the Defendants violated the provisions of the Exchange Act by carrying out a scheme, scheme and course of conduct that TFL intended to deceive retail investors and thereby tricked them into purchasing Terra Tokens at artificially inflated prices; endorsed false statements that they knew or recklessly should have known to be materially misleading; and, made false statements of material facts and omitted to state material facts necessary to ensure that the statements made are not misleading. The complaint alleges that TFL and the individual defendants also violated securities law provisions by selling non-exempt securities without registering them. The complaint alleges that TFL and the individual defendants also violated securities law provisions by participating in TFL’s failure to register the Terra tokens. The complaint further alleges non-title claims, such as California common law claims for aiding and abetting and civil conspiracy. Finally, the Complaint alleges that all of the Defendants violated the provisions of the Racketeering Influenced and Corrupt Organizations Act (“RICO”) by conducting the business of a company through a pattern of racketeering activity. . The Complaint further alleges that the Defendants violated California common law provisions by possessing the monetary value of the Terra Tokens at an inflated value that rightfully belongs to the Plaintiff and Class Members.
On May 25, 2022, the price of UST hit a low of $0.07 per token from $1, which it was unable to recover. The price of UST and LUNA tokens fell by 91% and 99.7% between May 7, 2022 and May 12, 2022, and did not recover.
Lead Applicant Deadline
The lead plaintiff’s deadline in this action is August 19, 2022. If you wish to serve as lead plaintiff, you must move the court no later than August 19, 2022. Any proposed class member may apply to the court to serve as lead plaintiff through counsel of their choosing or may choose to do nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions regarding this notice or your rights or interests, please contact plaintiff’s attorney, Sean Masson of Scott+Scott, at (212) 519-0522 or by email at [email protected]
About Scott+Scott Lawyers LLP
Scott+Scott has significant experience in pursuing major securities, antitrust, and consumer rights actions across the United States and actively litigates several cryptocurrency cases. The firm represents pension funds, foundations, individuals and other entities worldwide, with offices in New York, London, Amsterdam, Connecticut, California, Ohio and Virginia.