TerraForm Labs (TFL), the creator of Terra (LUNA), is being slammed with a class action lawsuit from US law firm Bragar Eagel & Squire, P.C.
In a press release, the law firm states it is filing a suit on behalf of investors against TFL and multiple associated entities, including proprietary trading firm Jump Trading, and crypto hedge fund Three Arrows Capital.
In May, Terra’s native token LUNA and its stablecoin UST both collapsed to essentially zero after UST lost its peg to the US dollar.
The complaint alleges that the defendants violated a provision of the Securities Exchange Act of 1934.
The law firm alleges that TFL:
“[carried] out a plan, scheme, and course of conduct that TFL intended to and did deceive retail