Scott+Scott Attorneys has filed a securities class action lawsuit against various players perceived to be involved in the unforgettable Terra (LUNA) descent. The renowned litigation firm filed the case on June 20, 2022, in the U.S. District Court for the Northern District of California. The lawsuit primarily targets Do Kwon, TerraForm Labs, Jump Crypto, Jump Trading LLC, and Three Arrows Capital (3AC).
Other defendants are Republic Capital, Republic Maximal LLC, Tribe Capital, DeFinance Capital, DeFinance Technologies, GSR/GSR Market Limited, TerraForm Labs (TFL) Head of Research, Nicholas Platias, and other TFL Executive Officers.
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Scott+Scott Attorneys at Law LLP: TerraForm Class Action Notice
Per the notice, Scott+Scott Attorneys initiated this lawsuit on behalf of all persons and entities who bought TerraUSD (UST) and LUNA tokens within the ‘Class Period”, May 20, 2021, and May 25, 2022, and thereafter suffered huge losses.
Notably, the class of persons and entities involved here excludes the above-mentioned defendants and their affiliates. Accordingly, those that fall in this class are prompted to contact Scott+Scott attorney Sean Masson (212) 519-0522, or via email at [email protected].
The firm which has litigated major securities and several cryptocurrency cases made the following known;
“If you purchased Terra Tokens, including UST, LUNA, KRT, ANC, WHALE, ASTRO, APOLLO, XDEFI, MINE, aUST, vUST, MIR, Mirrored Assets (e.g. mBTC, mETH, mVIXY, mTSLA, etc.), Liquidity Pool tokens (e.g. UST-mVIXY-LP, bLUNA-LUNA-LP, XDEFI-UST-LP, etc.) and/or Bonded Assets (e.g. bLUNA and bETH) between May 20, 2021, and May 25, 2022, inclusive, and have suffered significant losses, realized or unrealized, you are encouraged to contact Scott+Scott attorney Sean Masson (212) 519-0522, or via email at [email protected], for more information.”
The lead plaintiff 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 member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain a member of the proposed class.
Scott+Scott Attorneys Strong Points
Recall that TerraUSD (UST) lost parity with $1 and went as low as $0.07 on May 25. Likewise, LUNA saw a massive 99.7% plunge between May 7 and May 12. Sadly, there has been no recovery in sight since both digital assets went south.
On this premise, Scott+Scott Attorneys contends that TerraForm Labs and other defendants violated provisions of the Exchange Act by carrying out fraudulent schemes that caused retail investors huge losses.
Secondly, the firm claims that the defendants failed to observe provisions of the Securities Act by selling non-exempt security without registration. Similarly, by participating in TerraForm Lab’s failure to register the Terra (LUNA) tokens, the firm holds that the defendants infringed provisions of the Securities Act.
According to the update, the case alleges that “the Defendants violated provisions of California Common Law by possessing the monetary value of Terra tokens at an inflated value which rightfully belongs to the Plaintiff and members of the Class.”
In terms of the California common law, the class action alleges that the defendants aided and assisted civil conspiracy.
Ultimately, Scott+Scott Attorneys at Law LLP claims that TerraForm Labs and other defendants disregarded provisions of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) when they handled the affairs of the enterprise using a racketeering activity pattern.