Legal firms fight over $8+ million in legal fees from Tezos class action suit
A number of legal firms are fighting over the $8.3 million in legal fees that were generated in the recent Tezos (XTZ) lawsuit. A US court found that Tezos was liable for $25 in damages to investors related to its 2017 ICO. Six legal firms were involved in the litigation, including Hung G. Ta Esq. PLLC (HGT), LTL Attorneys LLP, the Restis Law Firm PC, and Lite DePalma Greenberg LLC. Lawyers representing Block & Leviton LLP (B&L) and Hagens Berman Sobol Shapiro LLP. Have stated that the situation has devolved into “unseemly mudslinging” among the firms.
This legal battle is unlikely to affect the price of XTZ. Aside from the judgment against the company, which is already widely known by markets, the legal fees attached to the case have little affect on Tezos. The ICO boom in 2017 was wild, and many companies rushed to market with little regard to securities laws. The corporate fundraising space in the US is tightly regulated, which makes hasty ICOs a very dangerous idea. Other innovators, like Ripple, are still dealing with the murky regulatory framework in the USA, which may drive the company to leave and look for a better jurisdiction with more supportive regulations.
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