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If You Purchased Atonomi (ATMI) Tokens in 2018, a Class Action Settlement May Affect Your Rights

PRNewswire December 6, 2022

SEATTLE, Dec. 5, 2022 /PRNewswire/ — JND Legal Administration

The purpose of this notice is to inform you of the settlement so that you may decide what to do.

A partial settlement has been proposed in a class action lawsuit about Atonomi LLC’s 2018 sale of ATMI tokens. The settlement is with some of the Defendants, and the remainder of the case will proceed against non-settling Defendants. If you qualify as a Class Member, you may send in a claim form to get your share of the settlement fund. You can also exclude yourself from the settlement to retain your right to sue, or you can object to the settlement.

The United States District Court for the Western District of Washington authorized this notice. Before any money is paid, the Court will have a hearing to decide whether to approve the settlement.

Who is Included?

You are a Class Member and could get a payment if you either (i)┬ápurchased ATMI tokens via a Series 1 or Series 2 Simple Agreement for Future Tokens (SAFT) with Atonomi LLC in 2018; or (ii) purchased ATMI tokens through a “public sale” by Atonomi LLC on or about June 6, 2018.

Persons and entities affiliated with Defendants, and with the Court are not Class Members. If you are not sure if you are a Class Member, you can get more information, including a detailed notice, at www.AtonomiSecuritiesSettlement.com or by calling toll free 833-636-2117.

What is this case about?

The lawsuit claims that Atonomi’s 2018 sale of ATMI tokens failed to comply with the registration requirements of the Washington State Securities Act (“WSSA”). The plaintiff claims this entitles persons who purchased ATMI tokens directly from Atonomi the right to get back the funds they invested, plus interest, or damages if they sold at a loss. The plaintiff claims that under the WSSA, Atonomi and other entities and individuals involved in the token sale are liable to initial purchasers of ATMI. The Defendants deny any wrongdoing, and the Court has not found that any Defendant has committed wrongdoing.

What does the Settlement Provide?

The plaintiff negotiated a settlement with some of the Defendants, LaunchCapital, LLC, Woody Benson, and David Fragale. These three “Settling Defendants” have agreed to create a fund of $6,037,500 that will be used to pay Class Member claims, settlement administration costs, taxes, attorney’s fees and costs, and a potential service award to the plaintiff as approved by the Court. The “Net Settlement Fund”, which is the amount left over after fees, expenses, taxes and a service award, will be divided pro rata to all Class Members who timely file a valid claim form and do not exclude themselves from the settlement.

Your share of the fund will depend on the number of valid claims that are submitted by Class Members, the amount of ATMI you purchased, and the amount you recouped from selling any of the ATMI you bought from Atonomi. Generally, if you bought more ATMI and have more losses, you will get more money. If you bought fewer ATMI and have fewer losses, you will get less. All of the $6,037,500 will be paid out. If less than 100% of Class Members submit a claim, the pro rata share of all claimants will be adjusted so that all of the $6,037,500 is paid out. 

The Settlement Agreement, which is available at www.AtonomiSecuritiesSettlement.com, describes all the details about the proposed settlement.

How Do You Ask for a Payment?

A detailed notice and claim form contain everything you need. Just visit www.AtonomiSecuritiesSettlement.com to get one. To qualify for a payment, you must send in a claim form. Claim forms are due by February 20, 2023.

What Are Your Other Options?

If you do not want to be legally bound by the settlement, you must exclude yourself by February 20, 2023, or you will not be able to sue, or continue to sue the Settling Defendants about the legal claims in this case. If you exclude yourself, you cannot get money from the settlement. If you stay in the settlement, you may object to it by February 20, 2023. The detailed notice explains the process you must follow to exclude yourself or to object.

The Court will hold a hearing in this case, titled Hunichen v. Atonomi LLC et al., Case No. 2:19-cv-00615-RAJ-SKV on March 22, 2023, at 2:00 p.m. before the Honorable Richard A. Jones in the United States District Court for the Western District of Washington, 700 Stewart St., Seattle, Washington 98101.

At this “Final Approval Hearing,” the Court will consider whether to approve the settlement and a request by the lawyers representing the Class Members for an award of attorney’s fees and costs up to one third of the settlement fund ($1,992,375), and a service award of up to $10,000 for the named plaintiff for litigating Class Member claims.

The lawyers for Class Members are Joel B. Ard of Ard Law Group PLLC, Angus Ni of AFN Law PLLC, and William R. Restis of The Restis Law Firm, P.C., and they are seeking compensation for investigating the facts, litigating the case, fronting litigation costs, and negotiating the settlement fund.

If you don’t exclude yourself from the settlement, you may ask to appear at the Final Approval Hearing to tell the Court anything about the settlement you don’t like, but you don’t have to. For more information, you can visit www.AtonomiSecuritiesSettlement.com call toll free at 833-636-2117, or write to the Settlement Administrator at Atonomi Securities Settlement, C/O JND Securities Litigation, PO Box 91408, Seattle, WA 98111.


SOURCE JND Legal Administration

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