Tether’s flagship stablecoin has been slapped with a new class-action lawsuit filed in the United States District Court for the Southern District of New York by plaintiffs Matthew Anderson and Shawn Dolifka.
The corporation is charged with “unlawful and misleading” acts, with plaintiffs saying that the company lied about its stablecoin being backed one-to-one by adequate dollar reserves and “suppressed” information about failing to pass periodic audits:
Defendants engaged in the above unfair and deceptive activities and practises that were immoral, unethical, tyrannical, and unscrupulous.
The class-action complaint alleges that Tether violated the agreements it made with its members. Plaintiffs assert that this entitles them to “compensatory and consequential damages” in an amount to be established at trial.
The class members assert that they would not have acquired or paid less for the tokens if they were aware of all of Tether’s hidden internal processes. They are now seeking every available monetary and non-monetary aid.
“An opportunistic money grab” Tether has already replied to the “nonsense, copycat” complaint, stating that it would battle its “meritless allegations” fiercely.
The business asserts that the action, which it characterises as a “shameless money grab,” is not deserving of even a single satoshi (Bitcoin’s smallest unit of currency) in settlement funds.
The contentious stablecoin company is no new to legal wranglings. It settled with New York Attorney General Letitia James for $18.5 million in February for a hidden $850 million loan to affiliate bitcoin exchange Bitfinex.
Tether agreed to pay a $41 million punishment to the Commodity Futures Trading Commission in October after the regulator accused the company of making false claims about its flagship USDT stablecoin. Tether won a significant victory in September in a trillion-dollar market manipulation class-action case.
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