Tezos, one of the most hyped blockchain projects, has finally ended its three-year-long class-action lawsuit after receiving court approval for a $25 million settlement.
In a judgement finalised on August 28, the judge ordered that the funds from the settlement be distributed among ‘all persons and entities’ who participated in the blockchain project’s initial coin offering (ICO) and sold their tokens for a loss before November 25, 2019, or still holding the tokens or even lost passwords of their wallets.
However, the court excluded the defendants, the family of Tezos founders, and also anyone with a position in the company from receiving the settlement proceeds.
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All the parties are required to file for a claim for their settlement before October 16. It is to be noted that the parties receiving the settlement money will forfeit their claims to the tokens or any becoming parties to any other similar lawsuits against the company.
A Hyped Blockchain Project, but Controversial
Tezos has developed a proof-of-stake blockchain and raised $232 million in 2017 via an ICO. However, the project soon faced a backlash from the investors and was slapped with two lawsuits, which were then consolidated as one. The ICO investors alleged that the company violated the US securities laws, by offering unregistered securities.
The blockchain company already confirmed its decision to settle with the investors earlier this year, but the details of it were unknown then. The company justified the settlement citing time and expenses incurred through the long legal battle.
The court documents also detailed that the plaintiff’s counsel will receive a fee equal to a third of the settlement amount, in addition to around $203,000 in litigation fees, which has to be paid separately.