A group of investors behind a class-action lawsuit against Terraform Labs and its co-founder Do Kwon over fraud allegations has dropped the case.
In a September 28 filing with the U.S. District Court for the Northern District of California, attorneys representing plaintiff Nick Patterson, who filed the lawsuit on behalf of the investors, filed foot Notice of voluntary separation only against Terraform and Kwon. The notice did not explicitly state the reasons for dropping the case without prejudice.
“the [Terraform Labs] The defendants did not respond to the complaint […] No requests for summary judgment were filed.” “Because the court did not certify the proposed class for any purpose in this case and this class without prejudice, it will not bind the members of the proposed class.”
1/ In another win for Terraform Labs, a class action lawsuit alleging fraud against TFL and @stablekwon He was voluntarily dismissed from the U.S. District Court for the Northern District of California.https://t.co/oYfkblOf0H
— Terra Powered by LUNA (@terra_money) September 30, 2023
Related: Do Kwon says the SEC’s extradition request is impossible
Patterson’s legal team filed the lawsuit in June 2022 following the collapse of Terraform Labs, which many attributed to the beginning of a major collapse in the cryptocurrency market. Kwon and the company have since become the target of several authorities globally for their role in an alleged scheme aimed at defrauding investors.
In February, the US Securities and Exchange Commission filed a civil suit against Kwon and Terra for allegedly “organizing a securities fraud involving billions of dollars in crypto assets.” Authorities in Montenegro arrested Kwon in March and subsequently sentenced him to four months in prison for using false travel documents. At press time, it was not clear whether he would be released in Montenegro or extradited to the United States or South Korea.
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