NEW YORK, June 17, 2022 /PRNewswire/ — Roche Freedman LLP and Dontzin Nagy & Fleissig LLP filed a class action lawsuit on June 15, 2022 on behalf of investors in the crypto-asset “UST” against BAM Trading Services Inc. (“Binance U.S.”), as well as Binance U.S.’s CEO Brian Shroder, alleging that Binance U.S. violated federal and state securities laws when it sold UST to investors beginning on or around April 13, 2022.
The lawsuit, brought in the U.S. District Court for the Northern District of California, alleges violations of Sections 5, 12(a)(1), and 15 of the 1933 Securities Act, Sections 5, 15(a)(1), 20, and 29(b) of the 1934 Securities Exchange Act, and Sections 25110, 25130, 25503, 2521, 25501.5(a), and 25504 of the California Securities Act, based on Binance’s sale of UST, despite UST being a security, without any registration statement in effect and without registering as a securities exchange or broker-dealer. According to the lawsuit, these actions led to investors being wiped out when UST crashed in May 2022, losing essentially all of its $18 billion market capitalization over the span of a few days.
The lawsuit is thus brought on behalf of all persons or entities who purchased UST tokens on Binance U.S. from April 13, 2022, to the present. The action is captioned Jeffrey Lockhart v. BAM Trading Services Inc. and Brian Shroder, Case No. 53:22-cv-03461 (N.D. Cal.).
Binance U.S. is a Delaware company headquartered in Palo Alto, California. Mr. Shroder is a resident of California.
For investors who purchased UST securities on Binance U.S. during the Class Period, you are a member of this proposed Class and may be able to seek appointment as lead plaintiff, which is a court-appointed representative for the Class, by complying with the relevant provisions for the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). See 15 U.S.C. § 78u-4(a)(2)(A)(i)-(vi); § 78u-4(a)(3)(A)(i)(II); § 77z-1(a)(2)(A)(i)-(vi); § 77z-1(a)(3)(A)(i)(II). If you wish to serve as lead plaintiff, you must move the Court no later than August 16, 2022. You need not seek to become a lead plaintiff in order to share in any possible recovery. You may retain counsel of your choice to represent you in this action.
For further inquiries regarding this matter, please contact Kyle Roche ([email protected]) at 646-970-7509.
About Roche Freedman LLP
Founded in 2019, Roche Freedman LLP is a national law firm comprised of innovative and tech-savvy attorneys with stellar credentials. With experience from some of the most prestigious litigation firms in the country, RF’s legal team has a successful and decades-long track record of consistently achieving outstanding results in high-stakes and notable disputes on behalf of sophisticated clients. RF’s legal team has extensive experience litigating complex commercial, securities, antitrust, class action and derivative matters on behalf of both plaintiffs and defendants in a broad range of industries. RF couples a unique brand of creative thinking and technical expertise with well-balanced aggressive advocacy to achieve impressive results in complex, high-value, and class action matters. As the firm continues to grow, it has focused on building a diverse attorney pool with cross-functional expertise.
Founding Partner Kyle W. Roche is a recognized thought leader in the cryptocurrency arena and has published multiple articles on the intersection of cryptocurrency and law, including in the Wall Street Journal. He is a frequent speaker and lecturer on the topic, having guest-lectured at the Northwestern Pritzker School of Law and having served on the Keynote panel at Harvard Law School’s Blockchain, Fintech, & the Law conference. Founding partner Ted Normand is RF’s most experienced litigator and has both prosecuted and defended numerous complex cases under the federal securities and antitrust laws and in national class actions.
The firm’s attorneys are currently litigating numerous cryptocurrency cases. RF has been appointed as lead counsel in the seminal cryptocurrency class actions, Leibowitz et al. v. iFinex Inc. et al., Case No. 1:19-cv-09236 (S.D.N.Y.), Clifford et al. v. Tron Foundation et al., Case No. 1:20-cv-02804 (S.D.N.Y.), Messieh & Lee v. HDR Global Trading Limited & Arthur Hayes et al., Case No. 1:20-cv-03232 (S.D.N.Y.), Valenti v. Dfinity Foundation et al., Case No. 3:21-cv-06118 (N.D. Cal.).
About Dontzin Nagy & Fleissig LLP
Based in New York, Dontzin Nagy & Fleissig LLP is an elite litigation boutique that regularly represents plaintiffs and defendants in high-stake trials in state and federal courts and arbitrations throughout the United States, as well as in jurisdictions around the globe. We are often retained by clients shortly before trial to help secure victory in their most important disputes. We are litigation generalists that do not specialize in any single practice area or discipline. Indeed, our attorneys have successfully represented clients in complex commercial matters involving securities, cryptocurrencies, class actions, mergers and acquisitions, corporate governance, RICO, patents, copyright, trade secrets, regulatory enforcement, and criminal defense, among other areas.
Partner Tibor L. Nagy is an experienced trial lawyer who as lead counsel has successfully tried numerous cases, including class claims, with hundreds of millions and even billions of dollars at stake. He has been recognized as an “Elite Boutique Trailblazer” by the National Law Journal, in Benchmark Litigation’s “Under 40 Hot List,” and as one of Crain’s New York Business’s “Notable Hispanic Leaders & Executives.” Counsel Gregory N. Wolfe is a trial lawyer who has successfully represented plaintiffs and defendants in a variety of complex matters seeking hundreds of millions to billions of dollars in damages. The firm routinely represents companies, investors, and other individuals in cryptocurrency disputes and has been doing so for over half-a-decade—a lifetime in the world of cryptocurrency.
SOURCE Roche Freedman LLP