Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, has filed a class action lawsuit against Defendants Celsius Network LLC (“Celsius”), Celsius Lending LLC, Celsius KeyFi LLC (collectively, the “Celsius Entities”) and its company executives Alexander Mashinsky, Shlomi “Daniel” Leon, David Barse, and Alan Jeffrey Carr. The action, which was filed in the U.S. District Court of New Jersey and captioned Goines v. Celsius Network, LLC et al., Case No. 3:22-cv-04560, asserts claims under §§5, 12(a)(1),15, and 20(a) of the Securities Act of 1933 (the “Securities Act”), as well as under §§10(b) and 20A of the Securities Exchange Act of 1934 (the “Exchange Act”), on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased so-called Celsius Financial Products from February 9, 2018 and July 13, 2022 inclusive (the “Class Period”), and who were damaged thereby.
Celsius is a financial services company that generates revenue through cryptocurrency trading, lending, borrowing, the sale of its unregistered securities, as well as engaging in proprietary trading.
The lawsuit contends that Defendants violated provisions of the Exchange Act by carrying out a plan, scheme, and course of conduct that Celsius intended to and did deceive retail investors and thereby caused them to purchase Celsius Financial Products at artificially inflated prices; endorsed false statements they knew or recklessly should have known were material misleading, and they made untrue statements of material fact and omitted to state material facts necessary to make the statements made not misleading.
The complaint alleges that Celsius and its affiliates, along with the Individual Defendants, also violated provisions of the Securities Act by selling non-exempt securities without registering it. The complaint alleges that Celsius and Individual Defendants violated provisions of the Securities Act by also participating in Celsius’ failure to register the Celsius Financial Products. The complaint alleges that the Defendants violated provisions of the New Jersey Common Law by possessing the monetary value of Celsius Financial Products of inflated value which rightfully belongs to the Plaintiff and members of the Class.
The price of Celsius’ CEL Tokens went from a high of $7.73 on June 3, 2021, to a low of $0.28 just over a year later on June 12, 2021, in the wake of the June Crisis and Celsius freezing its investors accounts and made untrue statements of material fact and omitted to state material facts necessary to make the statements made not misleading.
Case Milestones and Updates
- On July 13, 2022, plaintiffs filed the initial complaint on behalf of “all people in the United States who purchased Celsius Financial Products by way of a Celsius Earn Rewards Account, the Company’s so-called native “CEL Tokens,” and/or the Celsius Loans (collectively referred to as the “Celsius Financial Products”) from February 9, 2018 to July 13, 2023.”*
- On September 13, 2022, multiple plaintiffs and law firms moved for leadership appointment.
- On April 14, 2023, Judge McNulty appointed Scott+Scott as lead counsel of the class case, noting the firm’s “deep experience” in securities litigation. To learn more click to read the CELSIUS LP ORDER.
At this time, the period for seeking appointment as lead plaintiff has ended. If you purchased any of the Celsius Financial Products during the proposed class period, you are automatically included as a non-named member of the class. In other words, non-named class members may choose to do nothing at this time and still remain a member of the proposed class. Non-named plaintiffs are eligible to submit a claim form when the case is ultimately resolved to receive your pro rata share of any recovery for the class.
*Counsel is currently evaluating claims on behalf of non-US plaintiffs as well.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Plaintiff’s counsel, Sean Masson of Scott+Scott, at (212) 519-0522 or via email at celsiuslitigation@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States and is actively litigating several cryptocurrency cases. The firm represents pension funds, foundations, individuals, and other entities worldwide, with offices in New York, London, Amsterdam, Connecticut, California, Ohio, and Virginia.
CONTACT:
Sean MassonScott+Scott Attorneys at Law LLP230 Park Ave, 17th Floor, New York, NY 10169(212) 519-0522smasson@scott-scott.com