XTZ Foundation Will Settle Its $25 Million Lawsuit

The XTZ Foundation or the Tezos foundation will settle its $25 million consolidated class-action lawsuits on March 20 after more than two years spent in the court as we are reading in the following Tezos news.

In a blog post on the website, the foundation claims to have chosen to do this because of the financial expenses that occurred during the proceedings:

 “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 proceedings are waiting on the court’s approval. After a few years from the record $232 million initial coin offering in 2017, the lawsuits against the XTZ Foundation began to increase thanks to the token distribution being delayed during a legal dispute between the creators of the cryptocurrency and the foundation’s president at that time, over the control over the funds of the project. A few plaintiffs in 2018 accused Tezos of issuing unlicensed securities that were moved to consolidate their cases against Tezos and the consolidation was being granted by the court in 2018. Tezos’ council claimed that they didn’t issue unregistered securities describing the lawsuit.

 “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 avoids the risk of having a court rule about the ICO being security. Since the ICO, all of the Tezos assets have tripled in value with the foundation’ March 9 report revealing that it holds about $635 million in assets. The reports also show that the foundation deployed more than $37 million in grant funding for the network in 2019. The Tezos Foundation has not yet settled in court and many of the details remain unknown. There are many class-action lawsuits and it is not clear how many people will actually file a claim when the time comes. Tezos will explain further shortly, adding to the previous explanation:

 “Settlement funds will be distributed to those in the settlement class who file valid claim forms. The settlement class would consist of those who participated in the 2017 fundraiser, but would exclude the defendants and certain of their affiliates.”