US Rapper Discharged Of Securities Fraud Accusation

Jyoti  |  Mar 4, 2020

The US Court of Northern Georgia has dismissed the lawsuit against the rapper T.I, that claims, in August 2017, the rapper sold FLiK tokens for his company’s initial coin offering (ICO). As per the report, the investors, who have sued the rapper, failed to produce concrete evidence of securities violation against T.I.

Investors Fail To Produce Evidence Against Rapper

While delivering his judgment, the US district judge Charles Pannell Jr., said, “The plaintiffs have merely alleged that Harris encouraged his Twitter followers to visit the website for the FLiK ICO. They have not provided any statements from Harris about the value of the FLiK tokens. The facts as pleaded do not rise to the level of particularity required”.

He further stated that the plaintiffs were not able to prove that T.I. was involved in securities violations. The judge mentioned that plaintiffs neither resides in Georgia nor did they have travelled to Georgia, therefore, it (court) could say the tokens were accepted outside of Georgia.

25 Investors Sue Rapper And His Partner

According to the reports, in November 2018, the rapper and his business partner Ryan Felton faced the charges of state securities fraud and unjust enrichment for selling tokens to the investors. The report suggested that in the year 2017, from August to October, the price of FLiK grew by 400 percent but in the following three months it came down by 53 percent. Later, the company was planning to launch a token on its platform but it missed, because of which, in August 2018,  the price of FLiK experiences a loss of $0.08. Later, while filing a case against the rapper, the plaintiff alleged to loose more $2 million collectively.

In May 2019, the investors also filed a complaint against an entertainer Kevin Hart, they alleged that Hart was promoting ICO on social media. Presently, the court has not heard that case.

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