New Class Action Lawsuit Filed Against Terra, Do Kwon, and Associated Entities
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Terra’s legal woes continue to mount as a new class action lawsuit has been filed against Terraform Labs, co-founder Do Kwon, head of research Nicholas Platias, and several firms associated with the company. Law firm Bragar Eagel & Squire, P.C. filed the lawsuit in the United States District Court for the Northern District of California on behalf of investors who bought several associated tokens.
The list of assets is quite vast and includes UST, LUNA, KRT, ANC, WHALE, ASTRO, APOLLO, XDEFI, MINE, aUST, vUST, MIR, Mirrored Assets, liquidity pool tokens, and bonded assets. Investors who bought the tokens between May 20, 2021, and May 25, 2022, can apply to the court to be lead plaintiff until August 19.
The complaint claims that the defendants “violated provision of the Exchange Act.” Among other things, it claims that they carried out
“a plan, scheme, and course of conduct that TFL intended to and did deceive retail investors and thereby caused them to purchase Terra Tokens at artificially inflated prices.”
These complaints are similar to what other lawsuits against Terra have alleged. A lawsuit filed in June 2022 stated that Do Kwon, Terraform Labs, and others violated federal securities laws and misled investors.
Other major entities have also been affected by the Terra fallout. Binance.US has been hit with a class action lawsuit over the UST stablecoin, saying that it violated laws for the sale of unregistered securities.
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