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Internet Computer Class Action Lawsuit

Company Name
DFINITY USA Research LLC
Class Period
May 10, 2021 to Present
Motion Deadline
October 10, 2021
Court
Northern District of California
16 days left to seek lead plaintiff status

Case Summary

The Internet Computer class action lawsuit charges DFINITY USA Research LLC (“Dfinity USA”), DFINITY Foundation (“Foundation”), and their founder Dominic Williams with violations of the Securities Act of 1933 and Securities Exchange Act of 1934 and seeks to represent purchasers of Internet Computer (“ICP”) tokens between May 10, 2021 through the present (“Class Period”) in the United States.  The Internet Computer class action lawsuit was commenced on August 9, 2021 in the Northern District of California and is captioned Valenti v. DFINITY USA Research LLC, No. 21-cv-06118.

If you wish to serve as lead plaintiff of the Internet Computer class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Internet Computer class action lawsuit must be filed with the court no later than October 12, 2021.

CASE ALLEGATIONS: According to the Internet Computer class action lawsuit, starting in early 2017, Dominic Williams began promoting his “Internet Computer” blockchain.  Along with other employees of the Foundation and Dfinity USA, Williams wrote about Internet Computer’s promise in various internet posts, allegedly aimed at investors, describing the purported utility of Dfinity USA’s eventual network.  The main purpose of these posts, the Internet Computer class action lawsuit alleges, was to drum up demand for an initial coin offering (“ICO”) in 2018.

The Internet Computer class action lawsuit alleges that defendants failed to register ICP as a security with the U.S. Securities and Exchange Commission; failed to qualify for an exemption from the registration requirements; materially defrauded investors in connection with the promotion, offering, and sale of ICP; and transacted in ICP in the Class Period while in possession of material, non-public information.

Defendants kept for themselves and ultimately sold into the market billions of dollars’ worth of ICP tokens.  According to the Internet Computer class action lawsuit, after insiders began to sell massive quantities of these ICP tokens, the price of ICP tokens fell from a high of over $730 after issuance to around $60 today.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ICP tokens in the United States during the Class Period to seek appointment as lead plaintiff in the Internet Computer class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Internet Computer class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Internet Computer class action lawsuit.  An investor’s ability to share in any potential future recovery of the Internet Computer class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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