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 Midnight Hub: ROOMS Non-Fungible Tokens (“NFTs”) and Digital Nomads NFTs issued by Midnight Hub and Rooms.tv, between January 15, 2023 and March 31, 2024 (the “Class”).
The case is captioned Hermann v. Brian Veluz-Nepomuceno et al., No. 3:24-cv-07704 (N.D. Cal.).
Midnight Hub and Rooms.tv promoted a Web3 ecosystem called Midnight Hub that would develop and grow community-run projects, such as a community-run streaming platform called Digital Nomads TV. In order to fund this project, Midnight Hub and Rooms.tv created and sold the Midnight Hub: ROOMS NFTs and Digital Nomads NFTs. The proceeds from the sales and royalties of those NFTs were supposed to be reinvested into 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 has 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 Midnight Hub: ROOMS NFTs 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. The complaint further alleges California state law claims in the alternative, if the Court determines the NFTs at issue are not securities.
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.
ABOUT WOLF POPPER: Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by courts. which have appointed the firm to major positions in securities litigation.
ABOUT BURWICK LAW: Burwick Law represents investors seeking accountability and financial justice in Web3 and digital asset markets. The firm focuses on digital consumer protection and emerging technology matters. For updates, follow Burwick Law at https://x.com/BurwickLaw.
Contact Instructions
- Phone: Chet B. Waldman – 212-451-9624
- Phone: Matthew Insley-Pruitt – 212-451-9621
- Phone: Philip M. Black – 212-451-9642
- Phone: Justyn J. Millamena – 212-451-9609
- Email: [email protected]