Key Takeaways:
- Three Arrows founder Su Zhu shared the self dismissal of a class action lawsuit against Terraform labs.
- However, FatMan Terra noted it was just a copycat lawsuit.
NEW DELHI (CoinChapter.com) — Three Arrows Capital CEO Su Zhu claimed “voluntary dismissal” of a class action lawsuit against Terraform Labs, Luna Foundation, and Luna investors.
Zhu shared a screenshot showing the latest lawsuit status between plaintiff Matthew Albright and Terraform Labs, Jump Crypto, etc.
As Per Zhu’s post, the plaintiff filed a notice with the New York Southern District Court for the voluntary dismissal of the lawsuit. Accordingly, the plaintiff’s voluntary dismissal was under Rule 41(a)(1)(i) of the Federal Rules of Civil Procedure.
Albright had alleged the collapse of Terraform Labs’ UST stablecoin resulted in a market crash that wiped away the savings of many crypto investors. Additionally, the lawsuit accused the defendants of falsely promoting UST, Terra (LUNA), and other related Terra coins.
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Furthermore, Albright alleged that defendants wrongly profited from Terra ecosystem tokens. As a result, the plaintiff filed a complaint against the defendant under the RICO act.
On Jan 6, Terraform Labs, Luna Foundation Guard, and Do Kwon filed a Motion To Dismiss Albright’s lawsuit. The defendants submitted screenshots that showed Albright profited from his UST and LUNA purchases.
Moreover, Terraform Labs stated that Albright lacked Article III standing since it required “a net loss in investment value that is fairly traceable to the defendant’s challenged action.”
Additionally, the defendants quoted the recent EthereumMax decision to support its motion to dismiss. The court had scheduled an oral argument for the same on Jan 11.
But, Is The Dismissal Of Class Action Against Luna Foundation Really That Big A Deal?
Meanwhile, Zhu was quite critical of the lack of media coverage of the dismissal of the lawsuit. The 3AC founder sarcastically wondered, “how long will it take crypto native media to report” on the dismissal?
However, crypto and finance researcher FatMan Terra noted that the Albright lawsuit’s dismissal was not a big deal. FatMan highlighted that Terralabs was facing multiple lawsuits after the UST disaster. As such, self-dismissal of a “copycat lawsuit” did not mean much, the Terra Research Forum member noted.
Terraform Labs is currently facing multiple lawsuits in different global jurisdictions. Moreover, FatMan announced the class action lawsuit filed in the US by the law firm Scott+Scott in Jul 2022. Therefore, the “main lawsuit” referenced in FatMan’s tweet likely means the Scott+Scott lawsuit.
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Moreover, FatMan Terra assured that the lawsuit against Terraform Labs, Jump Crypto, and other defendants would likely move forward. Interestingly, the crypto researcher took a dig at Three Arrows’ Su Zhu.
Curious how the scammer that received a massive LUNA 2 airdrop didn’t mention this.
FatMan Terra observed
FatMan highlighted that Zhu conveniently neglected to mention that the Albright lawsuit was one of the many lawsuits against Terra labs.
