- Tether has successfully avoided a class action lawsuit in the U.S. after a judge dismissed the case against it
- The lawsuit claimed injury over the fact that Tether’s USDT token wasn’t backed at points since 2017
- Judge Swain of the U.S. District Court highlighted the lack of substantial evidence in the plaintiffs’ complaint, supporting Tether’s position
Tether has avoided a class action lawsuit in the U.S. after a judge threw the case out on Friday. Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York handed down a decisive six-page ruling last week, effectively dismissing the lawsuit filed by Matthew Anderson and Shawn Dolika against Tether and Bitfinex companies. The pair had argued that Tether’s USDT token is not backed 1:1 by reserves, but the court sided with Tether and ruled that no injury had been caused to holders regardless of the truthfulness or not of the allegation.
Judge Denies Any Injury Was Caused
Anderson and Dolika filed the lawsuit in December 2021 on behalf of multiple crypto traders, using the ruling from the New York Attorney General the prior February that USDT tokens weren’t fully backed at points in its history due to the fact it periodically held no bank accounts.
The lawsuit alleged that USDT had suffered a diminished actual value but the plaintiffs failed to provide any plausible evidence of injury. Judge Swain highlighted that the complaint lacked substantial factual basis, leaving the plaintiffs unable to demonstrate any harm or wrongdoing on the part of the accused companies.
Tether and Bitfinex Win Comprehensive Legal Victory as U.S. District Court Dismisses Class Action Lawsuithttps://t.co/lyWxAQTDzl
— Tether (@Tether_to) August 4, 2023
Judge Agrees With Tether
At the time, Tether called the claims “shameless money grabs” stating that the action was a “textbook example” that would “never be dignified by way of paying one Satoshi in a settlement.” The firm said it would also “aggressively litigate and dispense” with the filing and then pursue recompense from Anderson and Dolika.
The judge sided with Tether, and while Tether and its sister company Bitfinex expressed their satisfaction with the outcome, there has been no mention yet of whether or not they will be chasing Anderson and Dolika for recompense.
