Tezos will reach settlements soon as lawsuits become a burden

The Tezos Foundation has recently announced that it will reach settlements for the ongoing class-action lawsuits due to increasing legal costs. The cases concern whether Tezos crypto (XTZ) is a security, whether it conducted a legitimate ICO and whether it misled its investors.

The Foundation has stated that the lawsuits are “meritless” and adds that it “continues to deny any wrongdoing.”

Lawsuits are expensive and time-consuming, and 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.

In 2018, Tezos shocked the entire crypto community by conducting one of the largest ICOs to have taken place. Later, however, two lawsuits were filed against the company claiming that the ICO was an illegal and unregistered securities offering. In response to this, Tezos had said that it was not a securities offering, but a fundraising event instead. It said that during this event, tokens were gifted in exchange for people’s donations to the project. Further details about the settlements are not specified. Though there are several class-action lawsuits, it’s not clear as to how many individuals will actually file a claim.

According to a Crypto Briefing report, Tezos said:

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.

The Foundation is not entirely aware of how much the settlement will cost. “The plan of distribution has yet to be determined,” the organization told Crypto Briefing.