The Firm prevailed in dismissing an action brought by investors in a cryptocurrency. The Plaintiffs alleged that defendants caused them to invest in a cryptocurrency under false pretenses, and based upon promises they never intended to fulfill. The Firm moved to dismiss, both on the ground that federal jurisdiction was lacking, and on additional grounds that all State claims were inadequately pled.
The United States District Court for the Southern District of New York (Stanton, J.) held that, under U.S. Supreme Court precedents, federal securities laws do not apply extraterritorially to purchases made by foreign residents on foreign exchanges. As a result, federal jurisdiction was lacking, and the Court declined to consider the state law claims.
A copy of Judge Stanton’s January 22, 2021 Opinion and Order in Barron v. Helbiz, Inc., 1:20-cv-04703-LLS, is attached.