Investors who participated in the FLiK initial coin offer, or ICO, in 2022 accept opposed entertainer Kevin Hart's bid to have the $vii million lawsuit dismissed.

The 25 investors claim that they collectively lost more than $2 million every bit a effect of Hart, rapper 'T.I.', and FLiK executive, Ryan Felton, touting unregistered securities for an ICO that ultimately failed to materialize.

ICO investors fight for suit against Kevin Hart to proceed

In their opposition, the plaintiffs argued that the FLiK ICO "depended on" endorsements from celebrities to "elevate the standing" and perception of the offering.

The investors assert that they accept "sufficiently pled that Mr. Hart was mostly enlightened of his role in the scheme or at the very least was reckless in promoting an unregistered sham to his 50,000,000 followers."

Plaintiffs argue that Hart's endorsement "increased the price of the thinly traded security" — driving the token'southward toll upward by 400% from $0.06 to $0.30 between August and October of 2022, in apprehension of the company's ICO.

However, prices would crumble 73% over the post-obit year equally the tokensale failed to materialize — falling dorsum to $0.08 by September 2022.

Hart accused of materially aiding FLiK

In October 2022, the 25 investors filed a $5 million suit against T.I. and Ryan Felton, claiming that they had been defrauded into purchasing at present-worthless unregistered securities every bit a outcome of misrepresentations and celebrity endorsements.

The plaintiffs amended their course-action to include $vii million in claims confronting Kevin Hart during May 2022, with the investors accusing the entertainer of having materially aided the fraudulent tokensale.

In September 2022, Hart posted a photo of himself with T.I. on Facebook alongside a caption that read:

"Me telling [T.I.] how much help he gon demand spending all that money he gonna make on his new venture. Lmfao But seriously, I'm Super Excited for T.I. and FLiK They're gonna beat information technology! #ICO #blockchain #crypto #bitcoin."

Charges confronting T.I. dismissed

On March 3, 2022, T.I. was dismissed of all securities fraud charges relating to the ICO, with U.Due south. District Judge Charles Pannell ruling that the plaintiffs had failed to observe concrete show of securities violations.

"The plaintiffs take but alleged that [T.I.] encouraged his Twitter followers to visit the website for the FLiK ICO," said Judge Pannell. "They have not provided whatever statements from Harris well-nigh the value of the FLiK tokens."

In his request for early judgment earlier this month, Hart argued that the fraud allegations laid confronting him were "threadbare" and exhibit less merit than the now-dismissed claims confronting T.I.