Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has dismissed a class action lawsuit against Tether and Bitfinex.
The lawsuit was filed by Matthew Anderson and Shawn Dolifka and alleged wrongdoing by the companies related to the stablecoin USDT.
According to a blog post on Tether’s official website, the judge issued a 6-page decision that comprehensively and decisively dismissed the lawsuit. The judge stated that the lawsuit lacked merit, leading to its dismissal in its entirety.
As per the report, the court ruled that the plaintiffs’ complaint lacked plausible evidence of any injury, as it didn’t show any diminished actual value of USDT.
Tether expressed that the dismissal of the entire class action lawsuit at this early stage indicates that the plaintiffs’ allegations were legally unfounded.
Following the favorable ruling, Tether spokesperson and CTO Paolo Ardoino tweeted about the comprehensive legal victory, emphasizing the court’s decision that the plaintiffs’ complaint lacked plausible evidence of any injury, indicating no diminished value of USDT.
It's a good Friday.#Tether and @Bitfinex Win Comprehensive Legal Victory as U.S. District Court Dismisses Class Action Lawsuit
The Court correctly held that plaintiffs’ complaint lacked any “plausible allegations of injury” because it includes no facts showing that “USDT had a…
— Paolo Ardoino 🍐 (@paoloardoino) August 4, 2023
A Look Back at the 2021 Filed Complaint
The current complaint is based on a previous one filed in 2021. At that time, Shawn Dolifka and Matthew Anderson alleged that Tether’s claim of being backed by the US Dollar was false. The recent developments in the case are related to this initial complaint from 2021.
The complaint stated that the defendants didn’t keep enough reserves to match the number of Tether tokens in circulation. There were instances when the defendants had no reserves at all. Additionally, the reserves were not solely composed of U.S. dollars, as Tether had claimed. Instead, they consisted of a mixture of other assets, including overcollateralized loans and undisclosed commercial paper.
The complaint raised concerns about the accuracy of Tether’s claims regarding its reserves and the composition of those reserves.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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