Group Launches Class Action Lawsuit Against CAVIRTEX - From The CoinFront

Canada’s largest online exchange, CAVIRTEX, is being faced with a class action lawsuit.

The suit is being pursued in reference to CAVIRTEX’s investment round which they pursued in early 2013. The company offered 10% of its shares for sale on Havelock Investments, a cryptocurrency-based asset exchange.

10,000 shares were sold in total on its IPO date of March 23rd, 2013. These shares were traded on Havelock until the end of 2013, when CAVIRTEX announced they would be delisting their stock from Havelock. At the time they were trading for around $120 CAD, an all-time high for that stock. CAVIRTEX offered to buy back their shares at an “adjusted exit price” of $30 CAD, a naturally unpalatable sum.

On top of this, the process of selling their private share certificate was complex and unwieldly, so many investors are now permanent shareholders in CAVIRTEX.

As a result, one group of investors is filing a class-action lawsuit against CAVIRTEX to the sum of $884,800 CAD, based on CAVIRTEX’s market cap at the time of delisting and the adjusted exit price.

Those who feel they were wronged by CAVIRTEX have until November 1st to submit a claim. If you were an investor at the time of delisting, contact claim@cavirtexlawsuit.com with your name, email, phone number, number of shares you held, and any other relevant information.

CAVIRTEX

CAVIRTEX is Canada’s oldest and largest Bitcoin exchange, and in fact they may be one of the oldest exchanges in the world.

The company recently made headlines for launching a fleet of Bitcoin ATMs across Canada.

Lawsuits Ahoy

Several entities in the Bitcoin world are currently facing lawsuits.

Silver Law Group is gathering information to launch a lawsuit against both Cryptsy and Bitcoin Savings & Trust. The suit alleges both organizations used “false and misleading claims” to fool investors. Cryptsy isn’t backing down without a fight, though.

Meanwhile, Dorian Nakamoto is suing Newsweek for what he claims has been dishonest, reckless reporting for their story tying him to Bitcoin creator Satoshi Nakamoto.

A class action lawsuit against what’s left of Mt. Gox by a group of Ontario-based bitcoiners has been partially certified as well, and hinges upon the Japanese government’s response.

Group Launches Class Action Lawsuit Against CAVIRTEX