Adriana Parker
A U.S. judge refused to combine the cases, arguing that the defendants had not been given the chance to give their input.
A federal judge has declined to combine several potential class-action lawsuits against FTX exchange that were brought forth by investors. The judge maintained that the exchange, as well as its defendants, have yet to provide their perspective.
Judge Jacqueline Scott Corley of the United States District Court issued an order on March 8th, rejecting the plaintiffs' plea to merge five proposed class-action lawsuits against the insolvent cryptocurrency exchange. Although none of the defendants objected to the request, the judge observed that some defendants had not yet had the chance to respond.
The order issued by Judge Jacqueline Scott Corley stated that the plaintiffs did not provide any statement confirming that they had discussed the consolidation with the defendants and that none of the defendants opposed the consolidation. The plaintiffs only claimed that no opposition had been filed by the defendants.
Julie Papadakis, Michael Elliott Jessup, Stephen Pierce, Elliott Lam and Russell Hawkins have sued Sam Bankman-Fried, the ex-CEO of FTX, and other individuals involved with the exchange, alleging misappropriation of assets. Although their primary target is Bankman-Fried, the plaintiffs are also pursuing other parties such as outside auditors and promoters of FTX.
The judge mentioned that it would be too early to appoint temporary class counsel prior to everything being consolidated, and that the defendants should have the chance to be heard first.
The legal team of Bankman-Fried recently indicated that a deferment in the criminal hearing due in October is a possibility. On March 8th, the lawyers wrote a letter expressing that such a delay is not definite yet, but it may have to be requested as they are waiting for a large influx of evidence to be brought to their attention. Furthermore, additional accusations were filed against Bankman-Fried in February.