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The judge granted preliminary approval for a settlement of $ 25 million in the lawsuit against Tezos

May 1, 2020

A. The California judge has tentatively agreed to an agreement of $ 25 million Tezos Foundation proposal to end class action consolidated.

The demand goes back shortly after the first coin offer of $ 232 million by Tezos (ICO) in July 2017 if Investors began filing lawsuits against the company, accusing Tezos of issuing unlicensed securities in the United States.

According to court files from a hearing on April 30, the judge wrote: “The tribunal will likely be able to approve the settlement, subject to further consideration in the settlement negotiation“The date for the arbitration hearing has not yet been fixed.

The judge granted preliminary approval for a settlement of $ 25 million in the lawsuit against TezosThe judge granted preliminary approval for a settlement of $ 25 million in the lawsuit against Tezos

If the foundation is found liable in the lawsuit, the damage estimates range from less than $ 1 million to more than $ 150 million. The proposed $ 25 million settlement offers members of the class action compensation ranging from 16% to more than 100% of the estimated damage.

Tezos denies every mistake

The foundation denies having committed a violation of its ICOand wrote in a blog post that they chose to settle out of court because the processes are “expensive and time consuming” and prefer one financial cost advantage:

“The Tezos Foundation has decided to address all of the requirements because it believes that this is in the best interest of the Tezos project and the community as a whole. The Foundation continues to believe that the claims were unfounded and continues to deny any mistake. “

Difficulties for the SEC

The SEC has also investigated the company in connection with its ICO, but has not yet filed a lawsuit against Tezos.. If the current deal ends, the SEC may find it even more difficult to find evidence that the Tezos Foundation has acted maliciously.

While the lawsuits may have scared some Tezos investors, supporters don’t seem to be too concerned. One Reddit user said it was “it’s over water …” and another said they were “much more concerned with the SEC than this collective action”.

Tezos’ assets have almost tripled since his ICOAccording to the Foundation’s March 9 report revealing this The fortune exceeds USD 630 million.

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