February 8, 2019 11:28 PM
Lawyers for Dynamic Ledger Solutions, the company behind the Tezos token sale, today filed several motions that would put a class action lawsuit against it back to square one.
In October 2017, disgruntled Tezos investors began filing[1] class actions lawsuits against Dynamic Ledger Solutions (DLS), the official name of the company Arthur and Kathleen Breitman ran as they planned the Tezos token sale. Last April, those disparate class actions were combined[2] into one, with investor Arman Anvari named as lead plaintiff. But Anvari likely won't be the lead plaintiff much longer, and that's good news for DLS and the Breitmans.
First, a brief lesson on class actions: It's not easy to be a lead plaintiff, but it is rewarding. In exchange for the time they spend taking part in court proceedings and engaging in discovery (i.e., exchanging and reviewing information), lead plaintiffs receive a much larger sum of any money recovered.
Anvari was selected as lead plaintiff through a process mandated by the Private Securities Litigation Reform Act (PLSRA). The lawyers representing him were selected in the same way.
It turns out, however, that he may not have been a great choice. ETHNews has obtained a filing made today by the counsel for Dynamic Ledger Solutions in the United States District Court of the Northern District of California. It indicates that:
"Anvari has – among numerous other shortcomings – made statements contradicting his allegations in this case … and has a long and ugly history of racist, anti-Semitic, and homophobic statements directed at the parties and others."
Indeed, in one social media post, he allegedly used an anti-Semitic slur to refer to the Breitmans. Putting the bigotry aside, it appears as though Anvari, using pseudonyms,
