How the lawsuit shakes out – including whether it receives a class-action certification – remains to be seen, given the early stages of the case.
Even still, observers like Anderson Kill lawyer Stephen Palley say that the lawsuit could drag on regardless of the long-term fortunes of the Tezos network itself. The allegation that state securities laws (not just federal ones) were violated represents "a significant area of risk for ICO promoters" in general, Palley said.
Palley also suggested that the lawsuit may not be the only one filed in relation to the controversy, speculating that "copycat" litigation could emerge as time goes on.
"In short, it's a complicated mess. I doubt that it will be resolved quickly, even if tokens are issued quickly. It is unclear what impact that this will have on Tezos' development," Palley told CoinDesk, adding: "It's definitely not a great development for a new venture.
To read the full article: Tezos Founders Sued for Securities Fraud in Potential Class Action' /> />