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Tron dismiss lawsuit claims against its 2017 ICO

Tron dismiss lawsuit claims against its 2017 ICO

Quick take

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  • A New York federal judge has been requested by the Tron Foundation to dismiss a class-action lawsuit claiming that security violations through the 2017 initial coin offering from Tron. 
  • They say that the claims are “fatally flawed“. 

A New York federal judge has been requested by the Tron Foundation to dismiss a class-action lawsuit claiming that security violations through their 2017 initial coin offering. They say that the claims are “fatally flawed“. 

Based in China, the blockchain developer has filed a motion to dismiss the case on the 15th of December claiming that the case didn’t have any connection to New York whatsoever. Furthermore, they have made it clear that the lead plaintiffs were not involved in the offering that they launched in 2017.

They further said:

“Despite having not purchased during the initial offering or from Tron, plaintiffs attempt to form a nexus between their purchases and alleged marketing activities by Tron.”

The company went on to make the argument that this complaint does not indicate any investors based in the United States were involved in the ICO.

Moreover, the motion highlights that the three lead plaintiffs bought their tokens through the Binance platform highlighting that the lawsuit should be let go as it appeals to security laws that don’t apply to secondary market purchases.

And to end it off, the foundation claimed that all the allegations claiming that the 2017 Tron WhitePaper were misleading and simply false.

“This claim was not even pleaded in the original complaint, and it is nothing but a litigation afterthought.”

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