A proposed class-action lawsuit alleges that the creators of the “meme coin” (LGB) and others misrepresented the digital asset in order to artificially increase its value before selling their parts for personal gain.
As a result, a lawsuit has been filed in Florida against the cryptocurrency’s inventors, accusing them of running a pump-and-dump scheme.
According to the 77-page lawsuit, the plaintiff, Eric De Ford, is suing the creators of the LGB token and their company, LGBcoin.io, for allegedly perpetrating a “pump-and-dump” scheme with the help of NASCAR, Brandonbilt Motorsports, driver Brandon Brown, and conservative figures like Candace Owens and David J. Harris, Jr.
What was the plan, exactly?
They are accused of falsely endorsing the meme coin on social media while hiding substantial ownership of the asset.
Investors who acquired the politically charged tokens between November 4, 2021, and March 15, 2022, according to the complaint, bought in particularly at that time when it was thought that NASCAR would authorize the LGB token’s endorsement of Brown. However, because their purchases were made at fraudulently inflated costs, they experienced enormous financial losses.
“Defendants’ strategy was a success,”
So, the suit reads.
“The misleading promotions and celebrity endorsements were able to artificially increase”
“the interest in and price of the LGB Tokens during the Relevant Period,”
“causing investors to purchase these losing investments at inflated prices.”
According to the lawsuit, “Let’s Go Brandon” is a political slogan that many individuals have used to express their displeasure with President Joe Biden.
When NASCAR authorities claimed that they had “changed [their] minds” about allowing the coin’s developers to support Brown, the token’s value plunged by 63 percent between December 30, 2021, and January 4, 2022.
According to the lawsuit, the LGB token bubble, during which the token’s price surged by more than 500%, broke almost immediately after NASCAR withdrew its sponsorship.
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