Updated 11/8/19 Atonomi ATMI SAFT Class Action
The Restis Law Firm is on the Lead Counsel team in Hunichen v. Atonomi LLC et al, currently pending in the United States District Court for the Western District of Washington. Case No. 2:19-cv-00615-RAJ-MAT.
Atonomi is a securities class action on behalf of investors in the Atonomi Initial Coin Offering pre-sale. Proposed class members invested approximately $25,000,000 through Simple Agreements for Future Tokens, or “SAFTS” between January and June 2018. The case does not include investors who affirmatively assented to the “Final Terms of Sale” by executing or affirmatively demonstrating agreement to those Final Terms.
Federal and state securities laws generally require any security offered or sold in the U.S. to be registered with the Securities and Exchange Commission or state securities regulators. These laws protect investors by requiring various disclosures that help investors understand investment risks.
Putative class members’ SAFTS are admitted securities. According to the Complaint however, Atonomi’s founders did not comply with federal and state rules required to be exempt from registration requirements.
Since the ICO, the Atonomi project has failed, and ATMI have become essentially worthless. If the lawsuit is successful, investors will be entitled to unwind their investment in the Atonomi SAFTS, and get back ETH or the equivalent in US dollars, plus interest. Investors would also be entitled to damages if they sold their Atonomi ATMI tokens at a loss.
On October 28, 2019, the Honorable Magistrate Judge Mary Alice Theiler denied defendants’ motions to compel individual arbitrations (i.e., no-class actions allowed) and to dismiss the case. Judge Theiler concluded defendants failed to prove that SAFT investors agreed to an arbitration clause that did not exist until months after they signed their SAFTS.
Judge Theiler also concluded the complaint sufficiently alleged Atonomi founders violated Washington securities laws by selling ATMI via the SAFTs. In doing so, the court rejected each and every one of the Atonomi founders’ arguments in favor of dismissal.
The defendants have a short right to appeal the matter to the Honorable Richard A. Jones, who ultimately presides over the case.