Tezos Foundation announced that it has entered into a settlement of all class-action lawsuits.
The settlement, if approved by the court, will conclude the blockchain project's prolonged Class Action dispute over its $232 million initial coin offering (ICO).
"The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole. The Foundation continues to believe the lawsuits were meritless and continues to deny any wrongdoing. However, 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," the foundation stated in the announcement.
In July 2018, Tezos shocked the market by conducting one of the largest ICOs in history. However, the project was soon hit by two lawsuits claiming that the ICO was an illegal and unregistered securities offering. The two lawsuits were then consolidated in 2018. In response, Tezos has argued that it was not a securities offering but a fundraising event instead, where tokens were given backs as a gift in exchange for people’s donations to the project.
The settlement is still pending court approval.