Co. Can't Duck Claims $17M 'Tokens' Were Unregistered Stock

Law360 (December 10, 2018, 9:26 PM EST) -- A New Jersey federal judge on Monday refused to toss a putative class action against a company that operates a blockchain-based tasking platform, leaving intact an investor's claims that Latium Network Inc. unlawfully raised more than $17 million by selling unregistered securities in the form of cryptocurrency called LatiumX tokens.

U.S. District Judge Susan D. Wigenton denied Latium's bid to dismiss Joevannie Solis' complaint, finding that he has sufficiently alleged that the tokens are "investment contracts" under the test set by the U.S. Supreme Court's 1946 SEC. v. W.J. Howey Co. opinion.

"Because the LATX tokens were never registered with the...

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