On March 3, District Judge Charles Pannell dismissed a lawsuit against rap artist T.I., who was accused of securities fraud by selling FLiK tokens during an ICO in August 2017.
As the judge explained in his decision, he was not provided with evidence of securities violations or misrepresentation, since T.I. did not make any statements about the cost of tokens.
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.
According to the decision, the plaintiffs also failed to prove that T.I. constituted a violation of securities law at the state level of Georgia. Neither the issuing company nor the plaintiffs were in the state. Moreover, they do not even claim to have visited Georgia or made transactions with local financial institutions.
The representative of the defendant said that he was satisfied with the decision of the judge.
T.I., known by his real name as Clifford Harris Jr., was accused by 25 investors of violating state securities laws, illicit enrichment, misrepresentation, and causing loss.
The FLiK token grew by more than 400% from August to October 2017 from $ 0.06 to $ 0.30, after which it fell by 53% to $ 0.14 in three months. In April 2018, the company announced that it would not be able to launch its platform on time. By August, the price dropped to $ 0.08. The plaintiffs estimated the total loss at more than $ 2 million.