Cryptocurrency News

Tezos Ongoing $25 Mln Legal Settlement Case – Exclusive Report.

The ongoing negotiations between 6 legal firms over $8.3 Mln in attorney’s fees awarded from Tezos’ $25 Mln legal case settlement has descended into “unseemly unclear,” consistent with lawyers representing Block & Leviton LLP [B&L] & Hagens Berman Sobol Shapiro LLP.

The $25 Mln cash settlement agreement with Tezos [XTZ] was approved earlier in the month of September, ending class-action claims that the firm distributed unregistered securities via its 2017 ICO crowdfunding.

Earlier on 7th Oct., the 2 firms asked United States District Judge Richard Seeborg to deny a motion for counsel fees filed in September by Hung G. Ta Esq. PLLC [HGT], LTL Attorneys LLP, the Restis firm PC, and Lite DePalma Greenberg LLC.

The motion sought an order compelling Block & Leviton to return funds it had “unilaterally” distributed to itself along with other firms, characterizing the firm’s actions as “brazen misconduct.”

As per HGT, B&L’s distribution would distribute 25% of the entire fees to itself, & 50% to Robbins Geller – a firm that was involved in the case but not docketed within the matter.

But attorneys representing the Block group described HGT’s motion as being “devoted to unseemly mudslinging, inaccurate accusations of deceit, and unfounded claims of violations of the principles of professional conduct,” claiming that HGT Law group had been conscious of fee distribution since Dec. last year:

“[HGT] never proposed a special fee allocation until after fees were awarded and sat on its hands until B&L sought to distribute the cash […] None of those reckless charges survive scrutiny.”

B&L claims it’s willing to resolve the matter via informal discussions or formal dispute resolution mechanisms should HGT withdraw their motion without any prejudice.

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