180 Interactions, 2 today
Block.one, a software business, is tired of being sued for the sale of EOS. It reached an agreement to settle for $27.5 million.
Block.one, the crypto startup behind the EOSIO network, has agreed to pay $27.5 million to settle a class-action lawsuit stemming from its $4 billion EOS ICO. When the Court rules, Block.one must pay money to claimants who invested in the ICO.
“Block.one believes this lawsuit was without merit and filled with numerous inaccuracies. However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products,” the company said in a statement today.
The settlement, submitted for approval by the court, concludes a class-action lawsuit filed on April 3 2020 by investors Chase Williams and William Zhang. The investors filed the case on behalf of anyone who bought EOS between June 26, 2017 and June 4, 2019. The settlement extends that date to May 18, 2020.
A similar lawsuit was filed on May 18, 2020, by Crypto Assets Opportunity Fund (CAOF) and investor Johnny Hong. In August 2020, the court consolidated the claims and designated CAOF as the main plaintiff.
Despite putting a price tag on the settlement, CAOF and Block.one continue to argue on the scope of guilt and damages, as well as the amount of money recovered. Before deciding how much each claimant is entitled to, the court must hear any prospective appeals. The court ruled that investors who may make a claim for less than $10 will receive nothing.
Settlement money, anyone?
Even though they put a price tag to the settlement, CAOF and Block.one continue to disagree on the extent of liability and damages, and the amount of money that would be recoverable. The court must handle potential appeals before it delivers its verdict on how much each claimant is entitled to.The court said those investors who can claim less than $10 will get zilch.
A proof of claim form can be obtained from the website www.blockone-settlement.com, but it’s inactive at the time of writing.