NEW YORK, NY / ACCESSWIRE / February 26, 2020 / Raiti, PLLC today announces that a securities class action lawsuit is pending against Elastos Foundation ("Elastos" or the "Company") and certain of its senior executives. This action was filed in the Supreme Court of the State of New York, County of New York, and subsequently removed to the Southern District of New York. The action is captioned Mark Owen v. Elastos Foundation, et al., No. 1:19-cv-05462 (S.D.N.Y).
The complaint asserts claims under Sections 5, 12(a)(1), and 15 of the Securities Act of 1933 (the "Securities Act") on behalf of all persons or entities that purchased or acquired Elastos cryptocurrency: (1) pursuant to Elastos' initial coin offering ("ICO") conducted between January 1, 2018 and January 31, 2018; (2) pursuant to Elastos' token lock-up program conducted on or around February 14, 2018; or (3) after the completion of the ICO, on the secondary market through November 21, 2018, the date of Elastos' last alleged solicitation of purchases of Elastos cryptocurrency.
Plaintiffs allege that between January 1, 2018 and January 31, 2018, Elastos conducted an ICO during which it received between $94 million and $200 million by selling Elastos tokens to investors. Prior to conducting the ICO, Elastos did not submit any registration statements to the United States Securities and Exchange Commission and there were not any available exemptions from the registration. Subsequent to the completion of the ICO, Elastos and certain of its senior executives actively promoted and solicited investors to purchase Elastos tokens on the secondary market. Elastos also established a lock-up program whereby investors agreed not to sell their tokens for a specified period in exchange for interest that accrued in the form of additional tokens. The action alleges that the ICO, lock-up program, as well as the promotion and solicitation to purchase Elastos tokens on the secondary market constitutes the offer and sale of unregistered securities without an exemption in violation of the Securities Act.
Not later than April 27, 2020, which is the first business day after 60 days from the date of the publication of this notice, any member of the purported class may move the Court to serve as Lead Plaintiff. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you wish to discuss this action or have any questions concerning this notice or your legal rights or interests, please contact Warren A. Raiti, Managing Attorney of Raiti, PLLC at (212) 590-2328 or firstname.lastname@example.org
Warren A. Raiti
1345 Avenue of the Americas
New York, New York 10105
SOURCE: Raiti, PLLC
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