Combs v. SafeMoon (SafeMoon Class Action)

Class action suit against Safemoon, alleging that the company used celebrity endorsements and material misrepresentations to lure investors and inflate the price of SAFEMOON Tokens. They claim that company executives and promoters subsequently sold their stakes before the token's value plummeted.

Though the Tenth Circuit has not addressed the issue of extraterritoriality, the court implements the Second Circuits “Irrevocable liability” test to determine that the SafeMoon sold securities within the U.S. Additionally, the Court dismisses the 10b-5(b) and 10b-5(a) and (c) claims against the SafeMoon executives because the claims lacked reliance. This case examines the accountability of celebrities who promoted the SAFEMOON token and the extent of SafeMoon's liability for the significant decline in its value.

2:22-cv-00642; 2:22-cv-01108