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Stormsmedia Sues Giga Watt, Inc. in ICO Class Action Blockbuster

On December 28, 2017, Silver Miller and Terrell Marshall filed a Class Action Complaint against Giga Watt, Inc.  It is important for investors in companies that raise funds utilizing an Initial Coin Offering to know that all pre-functional token sales fit the U.S. laws’ definition of the sale of a security, which means the seller either has to comply with U.S. securities laws by registering the product or obtain a government-granted exemption from those laws before conducting the sale.  In this case, the defendant -- whether intentionally or not -- did neither and is therefore strictly liable for offering and selling unregistered securities.  Just because utility tokens might one day have a consumptive use does not remove them from being a “security” prior to that use.  Promoting the expectation of profit from pre-functional tokens, like Giga Watt did and continues to do, is by definition the sale of a security; and this case will hold Giga Watt accountable for its actions.

See the Class Action Complaint:

Stormsmedia, LLC vs. Giga Watt, Inc., et al. 

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