Tezos Community Petitions to End the Class Action Lawsuits
Tezos was conceived as a governance-based blockchain to rival Ethereum, but it’s become more synonymous with protracted legal battles and internecine conflict. As the latest class action lawsuit drags its way through the courts, the Tezos community has petitioned for an end to all the legal turmoil so that everyone can move on. Also read: US […]
Tezos was conceived as a governance-based blockchain to rival Ethereum, but it’s become more synonymous with protracted legal battles and internecine conflict. As the latest class action lawsuit drags its way through the courts, the Tezos community has petitioned for an end to all the legal turmoil so that everyone can move on.
Tezos Community Prepares an Amicus Brief
Tezos community leaders are sick of all the lawsuits, so much so that they’re preparing to go to court themselves – to put an end to all the courtroom battles. The Stop The Class Action Lawsuits Against Tezos petition, which is to be filed in a San Francisco Court, asserts that the class actions filed by various other Tezos investors have no merit and should be dismissed. They write:
We do not feel the plaintiffs have been sufficiently harmed to warrant a class action against the program, which further delays and encumbers it by creating large legal difficulties which becomes self-fulfilling and induced by the very plaintiffs themselves who complain of delay. We denounce the plaintiffs as having done more harm to Tezos than the delays inherent in software and network development.
Don’t Fight, Just BUIDL
In essence, the Tezos community members behind the petition want to draw a line under the sand and move on. Their goal is to show the court that it is highly unlikely that the plaintiffs can form a class. If enough people denounce the class, and there are just six plaintiffs claiming they can form a class, the plaintiff’s case becomes much more difficult. The plaintiffs have claimed that they are speaking on behalf of the entire Tezos community…but it appears that a significant portion of that community demurs.
“Everything else appears to be on track for the project now, just the looming threat of legal action limits the foundation’s ability to speak,” explained Shaun Belcher, a board of directors member with Tezos Commons Foundation. He believes that what is at stake has ramifications, not only for Tezos, but for the future of blockchain projects in general, adding:
“We must understand that the Tezos class action case could set a precedent for all ICOs, past and future. If the community can prevail, not only will it help Tezos but it will immunize other blockchain projects from facing a class action, because failure here against Tezos would discourage law firms in the future.”
Bitcoin Suisse Also Washes Its Hands of Class Actions
Last week, Bitcoin Suisse AF, a BTC brokerage, also filed a motion seeking to dismiss itself from the Tezos class action lawsuit is has been named in, writing:
Bitcoin Suisse submits that it is not properly named as a defendant in the Tezos litigation because of its lack of contacts with both California and the United States sufficient to establish personal jurisdiction and because the alleged, limited currency conversion services it provided, solely in Switzerland, prior to the alleged Tezos ICO, and its alleged post-ICO conduct, cannot establish liability under Sections 5 and 12(a)(1) of the Securities Act.
With a betanet launch of the Tezos blockchain planned for late June, the race is on to clear the air of all impediments that could further delay proceedings. Before that can happen though there’s still code to audit, tokens to list on exchanges and countless other development tasks to tick off. Meanwhile, the class action lawsuit rumbles on while the Tezos community grows ever weary.
Do you think the Tezos community have a chance of dismissing the class action lawsuit? Let us know in the comments section below.
Images courtesy of Shutterstock, and Tezos.
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