Yet another lawsuit seeking class-action status has been filed in Florida against BitConnect, constituting the third legal action of its kind to be initiated in the state and the fifth overall in the U.S.
Florida residents Andrew Kline, Dusty Showers and Lena Hunt, along with Rhode Island resident Charles Mabra, filed the lawsuit in the U.S. District Court of the Middle District of Florida on Feb. 7, public records show. Additional suits have been filed in Minnesota and Kentucky.
The suit claims that BitConnect sold unregistered securities in the state and committed fraud by overstating the possible returns that users who purchased the BitConnect tokens would see. The plaintiffs also alleged that the defendants violated Florida trade and securities laws, as well as the applicable laws in Rhode Island.
The plaintiffs are seeking a jury trial, which would result in damages being levied against the defendants if they are successful. Proceeds would repay investors, as well as provide for the costs of the trial, according to the document.
In January, regulators in Texas and North Carolina moved against BitConnect ahead of a planned token sale, issuing cease-and-desist notices before the lending platform closure announcement later that month.
A full copy of the lawsuit complaint can be found below:
Justice statue image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.