Breaking: Judge Denies Consolidation of Class-Action Lawsuits Against FTX
United States Federal Judge has refused to consolidate several proposed class action lawsuits against the FTX exchange by investors.
According to the US. Federal Judge the exchange and its defendants have not yet been heard.
United States District Judge Jacqueline Scott Corley denied plaintiffs a request to consolidate five proposed class-action lawsuits against the bankrupt crypto exchange. the judge pointed out that not all defendants had the opportunity to respond yet.
"While plaintiffs state that no Defendant has filed an opposition, they offer no declaration attesting that they have met and conferred with Defendants and that they do not oppose consolidation."
Julie Papadakis, Michael Elliott Jessup, Stephen Pierce, Elliott Lam, and Russell Hawkins are among the plaintiffs who filed cases in California, accusing former FTX CEO Sam Bankman-Fried and other executives of misappropriating assets. Although Bankman-Fried is the primary target of all the plaintiffs, the cases also involve other defendants, such as external auditors and exchange promoters.
The Judge also expressed there was no need to consolidate before the defendant's side. The court discerns no need to do so without giving Defendants the opportunity to be heard. and it would be premature to appoint interim class counsel before consolidation.
On the other hand, Bankman-Fried's attorneys have indicated that the scheduled criminal trial in October may need to be postponed. In a letter dated March 8, Bankman-Fried's legal team stated that while they are not officially requesting a change in date, it may become necessary as they are awaiting a significant amount of evidence to be provided to them. Furthermore, the lawyers mentioned that additional charges were brought against Bankman-Fried in February.