Switzerland’s Tezos Foundation decided to settle a $25 million class-action claim filed in the US District Court for the Northern District of California.
The move came after more than two years of fighting in the court.
In a blog post, Tezos stated that it has decided to withdraw due to the financial losses incurred from the continuing proceedings.
The foundation believes “the lawsuits were meritless and continues to deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.”
The settlement hearings are currently pending the court approval.
Since completing a $232 million initial coin offering (ICO) in July 2017, legal actions were taken against Tezos, especially as the token distribution was postponed. This led to a legal fight between the cryptocurrency’s developers and the foundation’s chairman over ownership of the project’s assets.
In January 2018, several plaintiffs have accused Tezos of selling unregistered securities. They consolidated their lawsuit against Tezos, and the consolidation was approved by the court on 3 April 2018.
The exchange has stated that it did not issue any unlicensed securities, noting:
“The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole. The Foundation continues to believe the lawsuits were meritless and continues to deny any wrongdoing.”
Tezos holds assets worth $635M
After its ICO, Tezos’ assets have almost tripled in value as the company’s biannual report issued on 9 March showed that it holds assets worth $635 million.
The foundation has added that it has been offering $37.6 million in grant support to the Tezos (XTZ) network since August 2019.
On 19 March, Cryptolydian reported that Coase – a company established by Tezos co-founder Kathleen Breitman – seeks to handle this issue with its new game; Emergents.