Lawsuit Filed Against Creators of Influencer-Pushed Meme Coin Hawk Tuah

Legal Firm Burwick Law Files U.S. Federal Lawsuit on Behalf of Investors

A U.S. federal lawsuit has been filed by legal firm Burwick Law on behalf of investors against the creators of the influencer-pushed meme coin Hawk Tuah (HAWK). The lawsuit alleges that the creators of the coin marketed and sold an unregistered security, resulting in significant financial losses for the plaintiffs.

Background

Hawk Tuah was launched at the start of the month, with Haliey Welch, a social media influencer, serving as the face of the project. The coin quickly gained attention, with its price reaching a peak market cap of $490 million. However, the price collapsed 93% shortly after, with allegations of a rug pull surfacing.

Legal Action

Burwick Law filed the lawsuit on behalf of 12 American resident plaintiffs who claim to have collectively suffered damages in excess of $151,000. The lawsuit names Alex Larson Schultz, who has been identified as Doc Hollywood, OverHere Limited, Clinton So, and Tuah the Moon Foundation as the four defendants.

Complaint

The complaint alleges that the defendants marketed and sold an unregistered security, in violation of federal securities laws. The lawsuit also claims that the defendants failed to disclose material information about the coin, including the fact that it was a highly speculative investment.

Defendants’ Response

OverHere, one of the defendants, has broken its silence, claiming that the company made zero profit and worked purely on a contractual basis. The company also claimed that Doc Hollywood did not pull his weight, despite controlling all token decisions, fees, and the treasury.

Conclusion

The lawsuit filed by Burwick Law highlights the risks associated with the marketing of alleged “pump-and-dump” meme coins. For celebrities and influencers, the lawsuit serves as a stark reminder that lending one’s name and brand to cryptocurrency projects carries significant legal and reputational risks.

FAQs

Q: What is the lawsuit about?

A: The lawsuit is about the marketing and sale of an unregistered security, specifically the Hawk Tuah meme coin.

Q: Who is the plaintiff?

A: The plaintiff is Burwick Law, a legal firm, on behalf of 12 American resident plaintiffs who claim to have collectively suffered damages in excess of $151,000.

Q: Who are the defendants?

A: The defendants are Alex Larson Schultz, who has been identified as Doc Hollywood, OverHere Limited, Clinton So, and Tuah the Moon Foundation.

Q: What is the alleged wrongdoing?

A: The alleged wrongdoing is the marketing and sale of an unregistered security, in violation of federal securities laws, and failure to disclose material information about the coin.

Q: What is the outcome of the lawsuit?

A: The outcome of the lawsuit is pending, and it is unclear what the outcome will be.