Class action lawsuit Albright v. Terraform Labs, Pte. Ltd. et al. filed in the Southern District of New York Court has been voluntarily dismissed on Monday. The class action filed in August against Terraform Labs, Do Kwon, and affiliates accused the defendants of falsely promoting, manipulating, and offering TerraUSD (UST) stablecoin and Terra (LUNA).
Class Action Against Terraform Labs and Do Kwon Dismissed
Three Arrows Capital (3AC) co-founder Zhu Su in a tweet on January 10 revealed the voluntary dismissal of a class action lawsuit against Terraform Labs, Luna Foundation Guard, and its executives.
Lead plaintiff Matthew Albright has filed a notice with the U.S. District Court Southern District Court for the Southern District of New York. According to the notice, the case is voluntarily dismissed, without prejudice against the defendants.
The defendants include Terraform Labs, Jump Trading, Delphi Digital Consulting, Luna Foundation Guard (LFG), Do Kwon, Nicholas Platias, Jose Macedo, Kanav Kriya, and Remi Tetot.
The class action lawsuit accused the defendants of falsely promoting UST algorithmic stablecoin, Terra (LUNA), and other related Terra coins. Moreover, touting the stability of the coins when profits were being laundered out of Terraform Labs and into defendants’ personal accounts.
The move is likely due to recent revelations of market manipulation and trading of LUNA tokens by Sam Bankman-Fried’s FTX and Alameda Research. Zhu Su and Do Kwon earlier blamed Alameda Research and crypto lender Genesis for the UST depeg and shorting LUNA tokens after the depeg.
However, two class action lawsuits against Terraform Labs and Do Kwon filed by law firm Bragar Eagel & Squire, P.C. and securities and consumer rights litigation firm Scott+Scott are still active.
Terra (LUNA) Price Soars 12%
Terra (LUNA) price soared over 12% in the last 24 hours, with the current price trading at $1.55. The 24-hour low and high are $1.37 and $1.82, respectively.
The LUNA price rallied massively amid the latest developments regarding the Terra 2.0 chain. Jared from TFL in a tweet revealed that Terra Station will automatically update to Station, which is not compatible with Terra Classic (LUNC).
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