The CFTC’s initial Complaint against Fundsz has been dismissed.

In an order handed down on August 31st, Judge Berger cited the CFTC’s Complaint as an “impermissible shotgun pleading”.

As a general matter, “[t]he failure to identify claims with sufficient clarity to enable the defendant to frame a responsive pleading constitutes a ‘shotgun pleading.’”

As it was a technical dismissal, as opposed to one based on the evidentiary merits of the CFTC’s Complaint, the regulator was given until September 8th to file an Amended Complaint.

On September 7th the CFTC requested an extension of time to file.

The stated reason for the requested delay is the passing of Rene Larralde (51, right).

on September 6, 2023, the CFTC was informed that Defendant Rene Larralde has passed away.

Due to this sad development, the CFTC requests additional time to determine how to proceed.

The court granted the motion on September 11th, giving the CFTC till October 6th.

I’m not 100% but seeing as the case itself hasn’t been dismissed, I believe the previously granted preliminary injunction remains in place.

The court has advised the CFTC that if they don’t file an Amended Complaint, the case itself will be dismissed.

 

Update 2nd December 2023 – The CFTC filed an Amended Complaint on September 29th.