Updated 8/19/21 Atonomi ATMI SAFT Class Action
The Restis Law Firm is Co-Lead Counsel 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.
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 April 21, 2020, the Honorable Richard A. Jones denied defendants’ motions to compel individual arbitrations (i.e., no-class actions allowed) and to dismiss the case. Judge Jones 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 Jones 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.
On May 7, 2021, the plaintiff sought to certify a class of Atonomi SAFT investors. If certified, ICO investors will receive notice from the Court instructing them on their legal rights. Most likely, investors will be notified through the email address used to sign up for the ICO.
On June 3, 2021, the plaintiff sought preliminary approval of a partial class settlement with two of the defendants. If preliminarily approved, ICO investors will receive notice via email about how they can make claims, file objections, and opt-out of the settlement. If finally approved, the partial settlement will create a $6 million fund for ICO investors (including public sale investors) to make claims.
Class actions take time, and are governed by strict rules. Always rely on official notices from the Court, and not on this webpage for accurate information.