US investors withdraw their Terraform Labs lawsuit

US investors withdraw their Terraform Labs lawsuit

Altcoin news, News

The American investment company Albright Capital has withdrawn from a class action lawsuit against Terraform Labs. Terraform Labs is the company that is responsible for the Terra protocol as well as the Terra Luna Classic (LUNC) currency.

According to the records filed with the court, Albright and two other law firms, Scott & Scott and Bragar Eagel & Squire, voluntarily withdrew their claims “without prejudice and without costs against the defendant(s)” in front of a division of the New York Southern District Court.

In their lawsuit against Terraform and its co-founder, Do Kwon, as well as Terraform’s US affiliate firms, Albright et al. had intended to achieve a successful legal outcome. The claimants’ original intention was to bring together a large number of disappointed Terra investors still smarting from the ecosystem collapse in May 2022.

US Investors Drop Terraform Labs Lawsuit

In the field of law, a voluntary retraction of this kind is often done out in order to safeguard the claimant from potential adverse financial repercussions in the face of the likelihood of a judgement that is not favorable.

This comes only a few days after Terraform asked the same court to throw out the case in a request that was presented to that court. A document of 44 pages was presented by the attorneys in support of their allegations.

In relation to the lawsuit, a representative for Terraform said, as reported by and other media sites, that “it was proved that [the plaintiffs] had incurred no damage.”

A further statement was made by the representative, who said that neither the company “nor its principals” had “done any violation.”

And Terraform proceeded by saying:

“South Korean prosecutors had nine separate requests for detention warrants, and the courts granted zero of those requests. The subsequent months have provided conclusive evidence that the facts are on our side, and additional information is already being uncovered and will continue to do so in the future.

Claims that Terraform Engaged in “Deceptive Promotion” Have Been Retracted After the Lawsuit Was Lost

Albright and his colleagues wanted to establish that Terraform Labs had engaged in “deceptive advertising” in order to sell Terra ecosystem coins, and they set out to do it. The plaintiffs also said that executives from Terraform had taken money out of the Terra network for their own personal benefit, which the claimants had alleged.

When the claimants first filed the complaint in July of last year, Bragar Eagel & Squire claimed that Terraform had “deceived retail investors and, as a result, forced them to acquire Terra tokens at artificially inflated prices.” This was the basis for the claimants’ allegations.

In addition, the company said that officials at Terraform had “supported false claims they knew or recklessly should have known were substantially deceptive.” The plaintiffs further said that officials from Terraform had “violated the restrictions” of United States securities laws.

Compiled by Coinbold