Legal

Status Messaging App Sued By Investors – ICO Paper’s Missing.

Attorneys for investors is suing a renowned secure messaging application named ‘Status’. The CEO ‘Jarrad Hope’ and Chief Communications Officer ‘Carl Bennetts’ were named as individual defendants within the class-action lawsuit filed earlier in April.

Court documents are typically served via mail or delivered in person to defendants, but plaintiffs bringing the case against Switzerland-based Status filed a motion Monday asking the court to permit its top executives to be served through the firm’s attorneys, or via email and social media accounts.

The suit alleges the $100 Mln raised in its  ICO [Initial Coin Offering] via the sale of Status’ native SNT token in 2017 was an unregistered securities sale and demands an attempt by jury.

In line with the Monday’s motion, plaintiff’s counsel undertook “exhaustive efforts” to locate Hope and Bennetts who are supposedly residing in Switzerland.

They were, however, unsuccessful in retrieving an address for either executive, despite expending resources looking via social media, registries and even employing a personal investigator.

The letter also specified an effort to serve them via the 1965 Hague Convention, on the service of judicial documents abroad. This effort fell through because the defendants’ addresses were anonymous.

The motion alleges Status executives are avoiding being served, after attorneys for the plaintiffs attempted to serve the executives through Status’ counsel.

“Indeed, Mr. Nagy, counsel for Status, has represented that he spoke to at least one of the Individual Defendants by phone about accepting service during this suit, but this individual didn’t authorize Mr. Nagy to simply accept service on his behalf,” the motion added.

The lawsuit against Status is one among several other token offerings accused of violating the United States federal and state security laws, with the SEC taking two messaging apps [Telegram and Kik] to court over similar allegations within the last year.

The plaintiffs will now await a court approving alternative means of service to let the suit proceed.

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