The plaintiffs requested to consolidate a total of five proposed class action lawsuits against FTX but were denied by a U.S. district judge.
A federal judge has refused to consolidate several proposed class-action lawsuits against the FTX exchange by investors. According to the judge, the exchange and its defendants have not yet been heard.On March 8, United States District Judge Jacqueline Scott Corley laid down the order thatplaintiffs a request to consolidate five proposed class-action lawsuits against the bankrupt crypto exchange.
“While Plaintiffs state that no Defendant has filed an opposition, they offer no declaration attesting that they have met and conferred with Defendants and that they do not oppose consolidation.” Plaintiffs, including Julie Papadakis, Michael Elliott Jessup, Stephen Pierce, Elliott Lam and Russell Hawkins, accused the former FTX CEO Sam Bankman-Fried and other executives of misappropriating assets, filing cases in California. While all the plaintiffs are going after Bankman-Fried, the cases also include various other defendants, including outside auditors and those promoting the exchange.
Because of this, the judge also pointed out there’s no need to consolidate before hearing the defendants’ side. “The Court discerns no need to do so now without giving Defendants the opportunity to be heard. And it would be premature to appoint interim class counsel before consolidation,” the order wrote.
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