DCG asks judge to consolidate class actions to avoid contradictory decisions

Digital Currency Group CEO Barry Silbert argued in a letter to Judge Stefan Underhill that the two cases share the same facts, almost identical legal issues and class definitions.

Venture capital firm Digital Currency Group (DCG) and its CEO Barry Silbert have filed for consolidation of two class action lawsuits over alleged losses during the crypto winter.

In a letter sent to United States District Judge Stefan Underhill in Connecticut, the defendants argued that the two cases "arranged from the same facts, presented overlapping legal issues, and offered class definitions almost identical".

Defendants also argued that joining the cases would be necessary to avoid conflicting decisions and promote judicial efficiency. In the letter, the defendants informed Underhill that they had asked U.S. District Judge Lewis Liman to transfer the case from New York to Connecticut. The letter read:

"The motion will be fully served no later than June 13, 2023 and, if Judge Liman grants the transfer motion to this Court, the defendants intend to move quickly to consolidate the two actions."

In the letter, the Connecticut plaintiffs challenged the decision, arguing that it is premature to decide before the New York case is approved for transfer. They also expect plaintiffs in New York to oppose the transfer as there is much uncertainty about the nature and scope of the claims.

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