TechFlow reports that on February 3, according to Cointelegraph, FTX users and the law firm Fenwick & West have reached a settlement agreement regarding a class-action lawsuit filed in 2023. The parties plan to submit the settlement agreement to the U.S. District Court for the Southern District of Florida for approval on February 27.
The lawsuit alleged that Fenwick played a “key role” in FTX’s fraudulent activities, providing “substantial assistance” by creating and approving structures that enabled multiple frauds. Plaintiffs also accused the firm of advising FTX on how to circumvent money transmitter registration requirements and of being “aware of the commingling of funds and blurred boundaries between FTX and Alameda Research.”
Fenwick previously attempted to dismiss the lawsuit, arguing it was “unaware” of any misconduct and had only provided “routine, lawful legal services.” However, the court rejected this motion in November last year. The specific terms of the current settlement agreement have not yet been disclosed.
This case is part of a multi-district class-action litigation arising from the FTX collapse. Users had also sued FTX’s former external counsel Sullivan & Cromwell, but later withdrew that suit due to insufficient evidence.
