News & Analysis as of

Cryptocurrency Putative Class Actions

A&O Shearman

Cryptocurrency Platform Seeks Interlocutory Review By The Third Circuit Of Order Permitting Plaintiffs To Plead “Statistical...

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On April 11, 2025, a cryptocurrency platform (the “Company”) moved to certify for interlocutory appeal the September 5, 2024 decision by Judge Brian R. Martinotti of the United States District Court for the District of New...more

Nelson Mullins Riley & Scarborough LLP

OpenSeason: The SEC’s Enforcement Activity Threatens OpenSea and NFTs

Although the excitement for non-fungible tokens (NFTs) may have faded since its peak in 2022, the world’s largest NFT marketplace, OpenSea, has new and unwanted attention from the SEC. In addition to a potential enforcement...more

A&O Shearman

Western District Of Texas Dismisses Putative Securities Class Action Against Cryptocurrency Exchange For Lack Of Personal...

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On September 6, 2024, Judge Robert Pitman of the United States District Court for the Western District of Texas dismissed a putative securities class action against a family of corporations (“Corporate Defendants”) that,...more

Alston & Bird

Class Action & MDL Roundup 2024 Q1 – Reaching Across the Pond

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Welcome back to the Class Action & MDL Roundup! This edition covers notable class actions from the first quarter of 2024. In this edition, UK High Court weighs in on information asymmetry, debit is better than credit,...more

A&O Shearman

Supreme Court Holds That A Court—Not An Arbitrator—Must Decide Which Of Two Contracts Controls For Purposes Of Determining Whether...

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On May 23, 2024, the United States Supreme Court held that if parties’ agreements conflict as to whether a dispute is subject to arbitration, then a court (not an arbitrator) must decide which contract controls. Coinbase,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators - December 2023

The U.S. Supreme Court will likely decide before the end of its current term whether the failure to make a disclosure pursuant to Item 303 of Regulation S-K can serve as the basis for a securities fraud claim under Section...more

A&O Shearman

Southern District Of New York Dismisses Claims Against Cryptocurrency Platform Seeking To Hold It Liable Under The Securities Laws...

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On August 29, 2023, Judge Katherine Polk Failla of the United States District Court for the Southern District of New York dismissed with prejudice a putative class action against a decentralized cryptocurrency trading...more

A&O Shearman

Southern District Of New York Grants In Part And Denies In Part Motion To Dismiss Class Action Against Cryptocurrency Mining...

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On August 10, 2023, Judge Ronnie Abrams of the United States District Court for the Southern District of New York granted in part and denied in part a motion to dismiss a putative securities class action alleging that a...more

Proskauer - Blockchain and the Law

Cryptocurrency Companies: Enforceable Terms of Use Matter

It is not unusual for users of a platform or of software to challenge the enforceability of a company’s terms of use if they take issue with the company’s product or service and decide to bring suit. As most terms of use...more

Carlton Fields

Mark Cuban’s Cryptocurrency Conundrum: The Road to Filing Sanctions

Carlton Fields on

Selecting a named plaintiff in a putative class action can be one of the most important, but overlooked, decisions that a plaintiff’s counsel makes. Picking the wrong plaintiff can lead to delay, dismissal of claims, denial...more

Goodwin

Court Dismisses Post-SPAC Class Action for Lack of Standing

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On March 31, 2023, U.S. District Judge Ronnie Abrams of the Southern District of New York dismissed a putative securities class action against CarLotz, Inc. (CarLotz), and certain of its officers and directors on the grounds...more

A&O Shearman

Southern District Of New York Dismisses Putative Class Action Against Cryptocurrency Exchange For Failure To Adequately Allege...

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On February 1, 2023, Judge Paul A. Engelmayer of the United States District Court for the Southern District of New York dismissed a putative class action against a cryptocurrency exchange company, its parent, and the parent’s...more

Proskauer - Blockchain and the Law

Consumer Law Claims against French Crypto Asset Wallet Provider May Proceed in California Court

Customer lists held by providers and the personal information users enter to obtain digital wallets or set up crypto exchange accounts are enviable targets for hackers. Such data can be used to launch targeted phishing...more

Nelson Mullins Riley & Scarborough LLP

Nothing Gets Between These Celebrities and Their Crypto... Except a Class Action Lawsuit (and the Feds)

There is little in this world more valuable than fine art. Just ask Paul Allen, whose collection of paintings and sculptures recently fetched over $1.5 billion at auction, including $117 million for van Gogh’s “Verger avec...more

Goodwin

Dismissal of Putative Securities Class Action for Bellus Health, Inc.

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On September 21, 2022, U.S. District Judge George B. Daniels of the Southern District of New York dismissed with prejudice a putative securities class action against BELLUS Health, Inc. and certain of its officers....more

Troutman Pepper Locke

Plaintiff, Partner, or Neither? The bZx DAO and the Unknown Tale of Token Approvals

Troutman Pepper Locke on

Seven years ago, Ethereum launched and became the predominant blockchain for developers to build decentralized applications powered by smart contracts (dApps). By leveraging Ethereum's smart-contract compatibility, developers...more

Proskauer - Corporate Defense and Disputes

Blockchain Meets Morrison: Court Rejects Blockchain Class Settlement Because of Concerns About Adequacy of Representation

The U.S. District Court for the Southern District of New York recently rejected a proposed settlement of a securities class action involving purchasers of digital tokens due to concerns about whether the lead plaintiff had...more

Alston & Bird

Payments Docket - June 2022

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Welcome to the first edition of the Payments Docket, our roundup of key litigation involving the payment industry. This edition features a stolen cell phone number used to buy cryptocurrency, a pair of class actions accusing...more

Cohen & Gresser LLP

Not Your Keys…Still Your Crypto?

Cohen & Gresser LLP on

Underwood v. Coinbase Global, Inc., et al., a closely-followed putative class action in the Southern District of New York, alleges that Coinbase, a secure online platform for buying, selling, transferring, and storing...more

Skadden, Arps, Slate, Meagher & Flom LLP

Putative Class Action Lawsuit Alleges DAO Members Are Jointly and Severally Liable for a Cryptocurrency Hack

A first-of-its-kind putative class action lawsuit filed in the Southern District of California is testing the legal argument that a decentralized autonomous organization (DAO) is a general partnership exposing its members to...more

Goodwin

Delaware Chancery Court Clears Musk of Breach of Fiduciary Duty Claim

Goodwin on

On April 27, 2022, the Delaware Court of Chancery in In re Tesla Motors Stockholder Litigation rendered a post-trial verdict finding for Elon Musk, co-founder and CEO of Tesla Motors, Inc., on claims that Musk breached his...more

Eversheds Sutherland (US) LLP

DAO members may be jointly and severally liable for $55 million crypto theft

On May 2, 2022, a putative class action was filed against a decentralized autonomous organization (DAO) and its members seeking to recover $55 million in cryptocurrency losses stolen during a hack into the DAO’s decentralized...more

Bilzin Sumberg

New Lawsuits Target Cryptocurrency Companies and Their Celebrity Endorsers

Bilzin Sumberg on

We highlighted in a recent post regulators’ clear intentions to bring greater order to the cryptocurrency industry this year. The last three weeks have demonstrated that private litigants are not waiting on regulators to rein...more

Goodwin

Ninth Circuit Holds that Purchasers of Unregistered Shares in Slack’s Direct Listing May Bring Securities Act Claims

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Ninth Circuit Holds that Purchasers of Unregistered Shares in Slack’s Direct Listing May Bring Securities Act Claims; Small Class of Crypto Purchasers Recommended for Certification; Tether to Pay $41 Million to Settle...more

Goodwin

Federal Reserve Hints at Government-Backed Cryptocurrency

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Federal Reserve Hints at Government-Backed Cryptocurrency; Third Circuit Affirms Dismissal of Securities Fraud Class Action Against Shutterfly Inc. Regarding Allegedly Misleading Financial Projections; Ninth Circuit Holds...more

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