NEW YORK – 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., 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.
Source: Roche Freedman LLP
