Tim Draper Off the Hook [For Now] in Tezos Class Action Lawsuit
Claims against venture capitalist Tim Draper and Bitcoin Suisse in a Tezos class action lawsuit have been dismissed.
According to U.S. District Judge Richard Seeborg of the Northern District of California, the motions by Draper and Swiss-based
crypto financial services company Bitcoin Suisse to dismiss them as defendants in the Tezos securities litigation case have been granted. In the case of Draper the motion has been dismissed with leave to amend while for Bitcoin Suisse it has been dismissed without leave to amend.
Per Seeborg, the lead plaintiff in the class action lawsuit, Arman Anvari, failed to argue the “statutory seller” claim against Draper and Bitcoin Suisse plausibly.
Additionally, Seeborg ruled that Draper had no direct control over Tezos and thus could not be held individually responsible as a “control person.”
“Absent further averments regarding Draper’s “power to direct or cause the direction of [Tezos’] . . . management and policies,” as evidenced by his routine interactions with either DLS or the Foundation, Anvari cannot plausibly allege that Draper is liable as a control person,” Seeborg wrote in Case 3:17-cv-06779-RS.
Motions by the co-founders of Tezos, the husband and wife team of Arthur and Kathleen Brietman, as well as their firm Dynamic Ledger Solutions and Swiss foundation Tezos Stiftung were, however, denied.
In their motions to dismiss them as defendants, they had argued that the initial coin offering (
ICO), which was conducted last year and raised $232 million by the time it closed on July 14, was merely a fundraiser.