Case Updates | 11/07/2024
Related Case: Midnight Hub and Rooms.TV
New York, NY – November 7, 2024
On November 5, 2024, prominent investor rights law firm Wolf Popper
LLP (“Wolf Popper”) and leading crypto law firm Burwick
Law PLLC (“Burwick Law”) filed a class action lawsuit
in the U.S. District Court for the Northern District of California
alleging violations of the federal securities laws by Midnight Hub
and Rooms.TV and certain of its officers. The action is brought on
behalf of all persons who purchased or otherwise acquired Rooms and
Digital Nomads Non-Fungible Tokens (NFTs) issued by Midnight Hub,
between January 15, 2023 and March 31, 2024 (the
“Class”).
The case is captioned Noah Hermann v. Brian Veluz-Nepomuceno,
Percival Ong, Midnight Hub , and Rooms.TV, No. 3:24-cv-07704
(N.D. Cal.).
Midnight Hub and Rooms.TV promoted a Web3 ecosystem that would grow
a community-run streaming platform called Digital Nomads TV and
Rooms.tv. In order to fund this project, Midnight Hub and Rooms.tv
created and sold the Rooms and Digital Nomads NFTs. The proceeds
from the sales and royalties of those NFTs would then be reinvested
to grow the platform. However, after selling the NFTs, nothing was
done to develop the Midnight Hub ecosystem or its underlying
projects, and as a result, the value of the NFTs have fallen to
near zero.
The complaint alleges that the Defendants violated Sections 5,
12(a)(1), 12(a)(2), and 15 of the Securities Act by selling the
Room and Digital Nomads NFTs, which were unregistered securities,
and by making untrue statements of material fact or omitting
material facts in connection with the sale of the NFTs, and also
California state law claims.
If you are a member of the Class, you may file a motion to be
appointed lead plaintiff no later than 60 days after the
publication of this notice, which is Monday January 6, 2025. A lead
plaintiff is a representative party acting on behalf of other class
members in directing the litigation.