A federal choose has refused to consolidate a number of proposed class-action lawsuits towards the FTX alternate by buyers. In accordance with the choose, the alternate and its defendants haven’t but been heard.
On March 8, United States District Choose Jacqueline Scott Corley laid down the order that denied plaintiffs a request to consolidate 5 proposed class-action lawsuits towards the bankrupt crypto alternate. Regardless of no defendants opposing the movement, the choose identified that not all defendants had the chance to reply but. The order acknowledged:
“Whereas Plaintiffs state that no Defendant has filed an opposition, they provide no declaration testifying that they’ve met and conferred with Defendants and that they don’t oppose consolidation.”
Plaintiffs, together with Julie Papadakis, Michael Elliott Jessup, Stephen Pierce, Elliott Lam and Russell Hawkins, accused the previous FTX CEO Sam Bankman-Fried and different executives of misappropriating property, submitting circumstances in California. Whereas all of the plaintiffs are going after Bankman-Fried, the circumstances additionally embody numerous different defendants, together with outdoors auditors and people selling the alternate.
Due to this, the choose additionally pointed on the market’s no must consolidate earlier than listening to the defendants’ aspect. “The Court docket discerns no want to take action now with out giving Defendants the chance to be heard. And it could be untimely to nominate interim class counsel earlier than consolidation,” the order wrote.
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In the meantime, Bankman-Fried’s legal professionals have lately signaled that there could be a must push again the legal trial scheduled in October. In a letter dated March 8, legal professionals representing Bankman-Fried mentioned that whereas they’re not formally requesting a date change, it might be vital as they’re ready for a considerable chunk of proof to be despatched to them. As well as, the legal professionals famous that extra expenses had been filed towards Bankman-Fried in February.
