Tether Class-Action Lawsuits Merger

Issuer of Tether stablecoin Tether (USDT), currently engaged in many lawsuits, has received a request for consolidation from prosecutors, uniting three lawsuits, which the company has not denied.

On January 17, 2020, Tether stated, that they ”did not oppose the plaintiffs’ requests to combine these frivolous claims, originally filed, respectively, in October in New York, in November in Washington and in January in New York.”

Numerous lawsuits

Tether together with Bitfinex exchange was suspected of foul play by different parties quite often.

One of the most recent lawsuits concerns allegations that Tether and Bitfinex may be responsible for Bitcoin’s bullish trend in 2017, performing illegal actions.

As a result, three lawsuits against Tether appeared, which may be united into a single one.

Request for consolidation

On January 16 legal counsel for the lawsuit — Leibowitz, Young and Faubus — filed a request for merging three cases with the presiding judge.

The request described similarities of the cases which allowed to combine them.

Tether expects adding one more case to the three aforementioned ones: “A fourth class action was also filed in New York yesterday, which we expect will be consolidated with the previous three actions.” However, the company dismissed them: “None of these cases present meritorious claims.”

Tether commenting on legitimacy

Tether stated that the prosecutors’ research is not true to life:

“That research deploys preselected data to retrofit a desired narrative and demonstrates a patent misunderstanding of the cryptocurrency market and the demand that drives purchases of Tether.”

“Tether will continue to defend the digital token ecosystem and the many contributions of the cryptocurrency community, and will not now or in the future pay any amount to settle plaintiffs’ claims,” the company continued. “Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing.”

Tether is suspected quite persistently, though, as there are many articles about its doubtful fiat backing over the past years.