• Investment firm Albright Capital has withdrawn its class action lawsuit against Terraform Labs.
• The lawsuit was filed in response to the May 2022 ecosystem collapse of Terra Luna Classic (LUNC).
• Terraform has asked the court to dismiss the lawsuit, providing a 44-page document backing up their claims.
Investment firm Albright Capital has recently pulled out of a class action lawsuit against Terraform Labs, the firm behind the Terra protocol and the Terra Luna Classic (LUNC) coin. The lawsuit was filed in response to the May 2022 ecosystem collapse of Terra Luna Classic (LUNC), which left many investors disgruntled.
Albright and its fellow claimants, the legal firms Scott & Scott and Bragar Eagel & Squire, voluntarily retracted their claims “without prejudice and without costs against the defendant(s)” in a branch of the New York Southern District Court. It is believed that the move was done in a bid to protect the claimants from possible negative financial consequences in the face of a likely unfavorable verdict.
In response, Terraform submitted a motion to the same court, asking it to dismiss the lawsuit. The firm provided a 44-page document backed up their claims, stating that “it was demonstrated that [the claimants] had sustained no injury” and that “neither firm nor its principles” had “committed any wrongdoing.”
A spokesperson for Terraform further commented that South Korean prosecutors had all nine of their detention warrants rejected by the courts. The spokesperson added that “the intervening months have confirmed that the facts are on our side, and more are and will continue to come to light.”
The retraction of the lawsuit is a positive sign for Terraform Labs and its investors, who will be relieved to hear that the firm is not facing any legal action. It remains to be seen how the situation will develop in the future, but for now, it appears that the firm has been able to avoid any potential financial or legal consequences.