GAW Miners, LLC purportedly sold physical mining equipment to customers, but it is unclear if this is true.
The Complaint alleges Defendants have engaged in common law fraud and fraud in connection with the purchase or sale of securities, in violation of Section 10(b) of the Securities Exchange Act of 1934, various subparts of Rule 10b-5 thereunder, and sections 36b-29(a)(2) and 36b-4 of the Connecticut Uniform Securities Act. Defendants have also engaged in the offer and sale of unregistered securities, in violation of section 36b-29(a)(1) of CUSA.
On October 12, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff dismissed one of the individual Defendants on October 25, and on November 4, Lead Plaintiff filed an amended Complaint. Defendants filed a Motion to Dismiss the amended Complaint on December 6, 2016. The Court entered default judgment against two of the Defendants on March 24, 2017. On October 11, the Court issued an Order denying the remaining Defendant's Motion to Dismiss.
Plaintiffs filed a Motion to Certify a Class on September 12, 2018. On June 21, 2019, the Court issued an Order granting Plaintiffs' Motion to Certify a Class. The Class Period was shortened from the proposed 17 months to the five months between August 1, 2014 and January 19, 2015.
The case went to trial on October 20, 2021. On November 1, the jury rendered its verdict in favor of the Defendant. The Court issued entered judgment in favor of the Defendant on November 2. Plaintiffs filed a Motion requesting judgment as a matter of law on the issue of whether Hashlets, Hashpoints, Paycoin, and Hashstakers were investment contracts, or in the alternative, granting a new trial on December 3. On June 3, 2022, the Court agreed that the Plaintiffs were entitled to a new trial with respect to Paycoin only.