Rally investors were inappropriately encouraged to buy RLY tokens. The Company did not register the RLY token with the SEC; nor did the Company seek an exemption from registering the RLY tokens as securities. The SEC, in turn, has already found that RLY tokens are securities.
Nevertheless, the Company and its insiders used misleading marketing and promotions to inflate the price of the RLY token by touting the growth prospects for investors. These promotions mislead investors into purchasing the RLY tokens at artificially inflated prices.
Once their promotional efforts were completed, Rally and its insiders effectively “pulled the rug” on retail investors, leaving them with tokens that had lost 99% from the inflated price high in April 2021.
As a result, individual investors in RLY 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 RLY tokens. If you suffered losses in association with the purchase of RLY tokens between April 2021 through the present you are encouraged to reach out to Scott+Scott to learn more about your legal rights.