Plaintiff's law firm issued a press release on June 20, 2018, announcing the lawsuit. According to the press release, the Complaint alleges that Cloud With Me violated Sections 12(a)(1) and 15(a) of the Securities Act of 1933, by engaging in interstate commerce for the purposes of offering, selling, or delivering unregistered securities. The Complaint alleges that the CLD Tokens constitute securities by virtue of Defendants’ assertions that the CLD Token would increase in value as it became the “standard currency” for the Company’s yet-to-be-created decentralized cloud network as well as the continuous focus in Cloud With Me’s marketing campaigns on the “significant liquidity” CLD Token would have as it became listed on multiple virtual currency exchanges.

On October 18, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. On May 3, 2019, the Clerk of the Court entered a default judgment against the Issuer Defendant for failure to appear, answer, or otherwise plead to the Complaint within the time required by law.

Plaintiff filed a Motion for Class Certification on March 12, 2020. On July 30, the Court issued an Order granting Plaintiff's Motion for Class Certification.

On August 20, 2021, Counsel advised the Court that an agreement in principle had been reached to settle the case. The parties entered into a Stipulation and Agreement of Settlement on January 26, 2022. The Court granted preliminary approval of the Settlement on April 21. On July 26, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On November 8, 2022, the Court issued an Order authorizing distribution of the Settlement fund.