US Court Dismisses Class-Action Suit Against Uniswap Labs Over Scam Tokens
Summary:
The United States District Court of Southern New York has dismissed a class-action suit against Uniswap Labs, its CEO, and venture capital backers brought by plaintiffs who claimed they lost money due to scam tokens on the decentralized cryptocurrency exchange. The suit was filed by individuals who bought tokens on Uniswap between December 2020 and March 2022. The court ruled in favor of Uniswap Labs, stating that the federal securities laws do not cover the conduct alleged in the suit.
The class-action lawsuit filed against Uniswap Labs, its CEO, foundation, and venture capital supporters by individuals who claimed they suffered losses due to scam tokens on the decentralized cryptocurrency exchange has been dismissed by the United States District Court of Southern New York. Judge Katherine Polk Failla, who is also presiding over the Securities and Exchange Commission’s case against Coinbase, handed down the dismissal. The suit, filed by six individuals who bought tokens on Uniswap between December 2020 and March 2022 on behalf of a nationwide class of users, argued that Uniswap Labs controlled liquidity pools on the protocol, including those associated with the scammers who caused their losses. The suit was filed in April 2022, with the defendants seeking the recission of the contracts they entered into when purchasing the scam tokens, as well as compensation, under the Securities Act of 1933 and Securities Exchange Act of 1934. The order dismissing the suit against Uniswap was issued by the United States District Court of Southern New York.
Published At
8/30/2023 6:10:00 PM
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