In a significant legal victory for Tether and Bitfinex, Shawn Dolifka, the plaintiff in a meritless class action lawsuit, has decided not to appeal the judgment in favor of the companies, following the denial of his motion to amend his complaint by Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York. Judge Swain’s dismissal of the lawsuit is now final, and Tether and Bitfinex can rest easy, knowing that they will not fall prey to shameless litigation money grabs.
Dolifka Drops Appeal Against Tether and Bitfinex
Dolifka’s decision to forego his appeal rights was a wise one, as his claims were entirely meritless, and further litigation would not have resulted in any monetary or other benefits for him or his attorneys. Tether and Bitfinex have consistently refused to be swayed by frivolous litigation attempts aimed at extorting money, and this latest development is a testament to their unwavering commitment to fighting against such unscrupulous tactics.
Accusation on Tether and Bitfinex
Tether and its sister company, Bitfinex, were accused of making false statements about the reserves backing their stablecoin, USDT. The plaintiffs, who purchased USDT in 2019, claimed that they would not have done so had they known the representations were false. The judge ruled that the plaintiffs failed to provide evidence of actual reliance on the alleged false statements, a necessary element for breach of contract and unjust enrichment claims. However, the judge allowed the plaintiffs to amend their complaint to address this issue. The case continues, with the plaintiffs given 30 days to file an amended complaint.