Livepeer investors were inappropriately encouraged to buy LPT tokens. The Company did not register the LPT token with the SEC; nor did the Company seek an exemption from registering the LPT tokens as securities. The SEC, in turn, has already found that LPT tokens are securities.
Nevertheless, the Company and its insiders used misleading marketing and promotions to inflate the price of the LPT token by touting the growth prospects for investors. These promotions mislead investors into purchasing the LPT tokens at artificially inflated prices.
Once their promotional efforts were completed, Livepeer and its insiders effectively “pulled the rug” on retail investors, leaving them with tokens that had lost 94% from the inflated price high in November 2021.
As a result, individual investors in LPT tokens are now joining together through a class action brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of LPT tokens. If you suffered losses in association with the purchase of LPT tokens between November 2021 through the present you are encouraged to reach out to Scott+Scott to learn more about your legal rights.