A second class action lawsuit has been filed against Terra, and more cases will probably be filed in the coming future against the faltering stablecoin business.
In a press release from Sunday, Bragar Eagel & Squire revealed they will be suing Terra. In complex financial litigation involving derivatives, securities, and commercial law, the legal practice focuses on defending both individual and institutional investors.
The now-famous Dark Knight of Terra, FatManTerra, has announced a class action lawsuit through US lawyers Scott+Scott in an effort to recoup UST investments following the collapse of the Terra ecosystem.
Lead plaintiff Nick Patterson revealed yesterday that FatMan will join him in the class action lawsuit Patterson v. TerrForm Labs Pte Ltd et al. A class action lawsuit was recently brought by Luna Foundation Guard member Nick Patterson against Terraform Labs, Do Kwon, and VC firms.
Lawsuits Galore
According to Bragar Eagel & Squire, Terra reportedly violated the Exchange Act by “carrying out a plan, scheme, and course of conduct” intended to “deceive retail investors” and ultimately induce them “to purchase Terra Tokens at fraudulently inflated prices.”
The law firm further asserts that Terraform Labs (TFL) violated the Securities Act by selling unregistered securities. The claims made by Scott+Scott in their earlier complaint from July 17 are repeated in these accusations.
In the class action case, it was claimed that the Securities Act, the Exchange Act, the Racketeer Influenced and Corrupt Organizations Act (RICO), and the California Common Law had all been broken.
All investors who purchased Terra tokens between May 20, 2021, and May 25, 2022, are included in the class action lawsuit.
To add to the intrigue, Bragar Eagel & Squire on Sunday brought a second big lawsuit, this time against Celsius Network LLC and Alexander Mashinsky.
TerraUSD (UST), Terra (LUNA), KRT, ANC, WHALE, ASTRO, APPOLO, XDEFI, MINE, aUST, vUST, and MIR are among the tokens listed in Fatman’s file.
According to a discussion on FatManTerra’s Twitter account, Justin Sun, Binance, and Vitalik Buterin apparently supported FatManTerra’s proposal, which “included a direct conversion to USDC and reimbursement to UST holders utilizing an FDIC-style cap.”
When the Terra UST peg was lost and the reserves were all used up, FatMan recalls being “heartbroken” to witness the demise of a system he “truly believed in.” He stated:
“We demand a fair trial to uncover all of TFL & Do Kwon’s wrongdoings and so that justice can take its course… One way or another, Do Kwon will either atone for his sins or face retribution.”