Tether Cries Foul on Class-Action Lawsuit Alleging Misrepresentation of USDT

Tether Cries Foul on Class-Action Lawsuit

Tether faces a class-action lawsuit for the second time in under four months for inaccurately misrepresented USDT backing.

The complaint against Tether holdings was filed by Shawn Dolifka, and Mattew Anderson, both US citizens, in a New York court. The plaintiffs were reportedly representing other individuals who had bought the stablecoin.

The suit notes that Tether falsely claimed that the USD fully supported the USDT. The filing adds that the platform misled investors and that the sale of USDT was a violation of the contract.

The plaintiffs claim they would not have bought Tether tokens or incurred lower costs if they were privy to the false representations.

Tether has fired back, saying that the claims are baseless and copycat and would aggressively contest the case. It adds that the complainants are looking for payouts on meritless allegations.

The Commodity Futures Trading Commission fined Tether $41 million in September for similar claims. The company was also handed an $18.5 million fine in February for allegedly overstating reserves.

Source: CourtListener

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