Bitcoin traders agree to settlement in Mt. Gox class-action suit

[bitMTW]

http://www.pcworld.com/article/2149500/bitcoin-traders-agree-to-settlement-in-mt-gox-classaction-suit.html

[CryptoDomains]

NewGox 

[pabpete]

16.5 percent stake to how many people ? Is it based on money lost I wonder .

[feverpitch]

That link isnt loading for me...

[counter]

I'm hoping this turns out the be the better of the two options I'm aware of for a positive outcome for those who lost their coins.

[Dannie]

That link isnt loading for me...

The link works perfectly here

[Dannie]

http://www.pcworld.com/article/2149500/bitcoin-traders-agree-to-settlement-in-mt-gox-classaction-suit.html

I don't really get it.
For those didn't file the suit, they have no say on the decision? 

[bryant.coleman]

16.5 percent stake to how many people ? Is it based on money lost I wonder .

16.5% stake to users from USA and Canada. I think the majority of the shareholders were from the EU, so their stake will be much bigger than that given to the Americans. But still... nothing is final. 

[Lauda]

http://www.pcworld.com/article/2149500/bitcoin-traders-agree-to-settlement-in-mt-gox-classaction-suit.html

I don't really get it.
For those didn't file the suit, they have no say on the decision? 

I can't even open the article. Well legally, you don't.

[Dannie]

http://www.pcworld.com/article/2149500/bitcoin-traders-agree-to-settlement-in-mt-gox-classaction-suit.html

I don't really get it.
For those didn't file the suit, they have no say on the decision? 

I can't even open the article. Well legally, you don't.

It is strange that I have absolutely no problem accessing the page...

Anyway, here is the article:

Bitcoin traders agree to settlement in Mt. Gox class-action suit
Zach Miners @zachminers

    Apr 29, 2014 1:21 PM
    print

Plaintiffs in two class-action suits charging the embattled Bitcoin exchange Mt. Gox with fraud have agreed to a settlement, and new plans to revive the exchange have been drafted.

Earlier this year a class-action suit in Illinois was filed against Mt. Gox, following reports revealing the theft of some 850,000 bitcoins—worth hundreds of millions of dollars—due to a hacking attack. The exchange subsequently filed for liquidation with a Japanese court.

Now, under a settlement agreement, Mt. Gox will be reorganized rather than liquidated, and a portion of the lost bitcoins will be returned, according to a court document filed Monday night in the U.S. District Court for the Northern District of Illinois. A similar class settlement was also reached in Canada.

Under the plan, the investor group Sunlot Holdings will acquire Mt. Gox and establish a new Bitcoin exchange, dubbed “New Gox.” With the exception of a $10 million fiat currency holdback to fund recovery efforts, all bitcoins and fiat currency currently held by Mt. Gox, including 200,000 recently “discovered” bitcoins, will be returned to exchange members’ wallets, the court filing said.

Affected Mt. Gox members will also be treated as if they hold a 16.5 percent stake in New Gox, the filing said.

Under the agreement, Sunlot will make its best efforts to investigate and prosecute civil actions against anyone involved in the loss or theft of Mt. Gox’s bitcoins, according to the filing.

Mt. Gox was once the largest online exchange for buying and selling bitcoins. With its much-publicized downfall it has served as the poster child for the technological risks of the digital currency, and its uncertain future.

The settlement is contingent on the Japanese courts accepting the purchase with the agreed-upon terms.

“We are very excited about this deal,” said Jay Edelseon, lead attorney for the plaintiffs in the case, via email. For the U.S. class, liquidation would have been a disaster, because it would have taken a long time and generated a miniscule payout, he said.

The announced deal will provide immediate funds to the consumer creditors, he added.

A spokesman for Mt. Gox did not immediately respond to a request for comment.

A preliminary approval hearing for the settlement is scheduled for May 1.

[franky1]

I don't really get it.
For those didn't file the suit, they have no say on the decision?  

if they decided not to contact the illinois lawyers and join the lawsuit.. then i guess they made the choice that they didnt want to have a 'say'.
which goes to my opinion that some of the bitcoin community are just armchair activists, that never want to get personally involved in helping out or doing anything constructive to help themselves.. but they are damned sure going to be the first to complain when things dont go their way

[Dannie]

I don't really get it.
For those didn't file the suit, they have no say on the decision?  

if they decided not to contact the illinois lawyers and join the lawsuit.. then i guess they made the choice that they didnt want to have a 'say'

If some contact the lawyers saying they don't want that option, then what will happen?
The side (accept vs decline the option) with more money stuck in mtgox get the right to make the decision (Majority rule) ?

Sorry if this sounds stupid, but I have almost zero law knowledge and I am not in the US.
Thanks for your help in advance

[galbros]

Generally you are IN a class unless you opt out, so you are covered by whatever is agreed to.  Not sure if that was handled correctly here but that is the usual process.

I guess anything that helps get the community past Gox is a good thing, though I can't say I'm that crazy about the prospect of them returning.  I do hope everyone gets their coins back.

[mysidia]

So  Sunlot wants to buy the entire business -- name intellectual property, etc, for a single Bitcoin after its holdings are taken out,   but cancel all the debt?

Downgrading account holders' from debt holders to equity holders, and assigning a small share.

Is this process open to competitive bids?

The business,  with the debts eliminated (by converting them to owners), should be worth much more than 1 BTC  -  and sales proceeds which should be set at a fair price should go directly to Gox creditors or to their equity share in the new business --  the database and PHP code alone are worth more,  and accountholders should expect to collectively hold a much bigger share than 16%,  unless the venture capitalists are infusing more than $1 billion into this business.

The Gox accountholders combined should be sharing a stake larger than 50%  until others'  investments exceeds the ~$250 million   in  account balances that accountholders have lost.

[btbrae]

The WSJ article is more clear in that the action is on behalf of all customers, even though the proceedings have been taken by US/Canada ie. those that joined the suit.