5. February 2023

• Albright Capital has withdrawn from a class action lawsuit against Terraform Labs, the firm behind the Terra protocol and the Terra Luna Classic (LUNC) coin.
• The claimants had hoped to unite scores of disgruntled Terra investors after the May 2022 ecosystem collapse.
• Terraform submitted a motion to the same court, asking it to dismiss the lawsuit, backed up by a 44-page document.

American investment firm Albright Capital, along with legal firms Scott & Scott and Bragar Eagel & Squire, have withdrawn their claims in a class action lawsuit against Terraform Labs, the firm behind the Terra protocol and the Terra Luna Classic (LUNC) coin. The claimants had hoped to unite scores of disgruntled Terra investors smarting from the May 2022 ecosystem collapse.

The lawsuit, filed in a branch of the New York Southern District Court, was voluntarily retracted “without prejudice and without costs against the defendant(s).” This type of retraction is often carried out to protect the claimant from possible negative financial consequences, such as an unfavorable verdict.

The retraction comes days after Terraform submitted a motion to the same court, asking it to dismiss the lawsuit. Lawyers provided a 44-page document in support of their claim. A Terraform spokesperson told Cryptonews.com and other media outlets that “it was demonstrated that [the claimants] had sustained no injury” in the case, and that neither firm “nor its principles” had “committed any wrongdoing.”

The spokesperson also mentioned that South Korean prosecutors had nine of their nine detention warrants rejected by the courts. The intervening months have confirmed that the facts are on Terraform’s side, and more evidence will continue to come to light.

Overall, the withdrawal of the lawsuit is a victory for Terraform and its Co-founder Do Kwon, as well as US associate companies. It also signals a return to better times for Terra Luna Classic (LUNC) prices, which have been in the doldrums since the fall of the coin’s ecosystem.