New York Court Dismisses LIBRA, M3M3 Class Action Without Merits Ruling

A federal court in New York dismissed a class action involving the LIBRA and M3M3 token launches, ending the case without deciding whether either launch involved market manipulation or fraud.

Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York also denied the plaintiffs’ request to file another amended complaint. The case named Hayden Davis, Kelsier Ventures and Ben Chow, the former CEO of Meteora.

The court found that the plaintiffs had not adequately shown that Meteora qualified as an unincorporated association that could be sued. It also ruled that claims under the Racketeer Influenced and Corrupt Organizations Act did not meet the legal requirements for a continuing pattern of criminal activity.

The fraud claims against Chow separately failed to meet the required pleading standard. The decision addressed whether the allegations and legal theories were sufficient to proceed, rather than making a factual finding on the conduct alleged in connection with the launches.

LIBRA and M3M3 are crypto tokens whose launches were challenged in the consolidated class action.