New reports indicate that a proposed class-action lawsuit in Canada will seek $500 million for former investors that used Mt. Gox before it tumbled last month.
The lawsuit, which targets the exchange, it’s owner (Mark Karpeles), and one of the largest banks in Japan (Mizuho Bank), alleges the company was negligent, breached contract, and acted under fraudulent misrepresentation, according to Yahoo Finance Canada.
“We’re never going to find out what’s going on unless we start a lawsuit because it’s the only way we’re going to get access to the records,” said Toronto litigation lawyer Ted Charney to Yahoo Finance. “It’s really the only way to get the thing going.”
The notice of action to the Ontario Superior Court stated:
After this news broke, the price of bitcoins plummeted, creating a disruptive ripple effect that has nearly shut down the industry.
A similar lawsuit filed south of the border in Chicago, Illinois is also targeting Mt. Gox, and is at present time seeking class-action status.
According to Charney, his firm is working with the lawyers whose case is mentioned above. [source: Yahoo Finance Canada]