TelexFree Securities Litigation
The causation theory is that the defendants' fraudulent misrepresentations about the scheme's legitimacy and profitability directly induced investor investments, which resulted in financial losses when the scheme collapsed. The scheme's structure as a Ponzi or pyramid scheme meant that new investor funds were used to pay earlier investors, creating a false appearance of profitability. The court has recognized that these misrepresentations materially influenced investor decisions, establishing a direct causal link between the defendants' conduct and the investors' losses.
3
Pending actions
15
Total actions filed
Active
Status
10/21/2014
Established
Who qualifies
Investors who purchased TelexFree AdCentral or related packages between January 1, 2012, and April 16, 2014, and experienced a net loss, defined as having invested more funds than withdrawn, are eligible to participate in the settlement. The class includes all persons worldwide meeting these criteria.
Products involved
- TelexFree AdCentral packages
- VoIP services
Alleged injuries
- Financial losses due to scheme collapse
This page is generated from the official JPML pending-MDL report and public court records, refreshed monthly. It is provided for attorney reference and is not legal advice.
