b'PRIVATE LITIGATIONRensel v. Centra Tech, Inc., No. 17-cv-24500Centra Tech sought reconsideration of the courts (S.D. Fla. Feb. 6, 2020) damages calculation. Specifically, Centra Tech argued On February 6, 2020, the U.S. District Court for thethat the court should calculate damages using the Southern District of Florida denied a motion by Centradollar value of the cryptocurrency originally paid by Tech, Inc. (Centra Tech) seeking reconsiderationeach plaintiff to purchase CTR Tokens.of the courts previous order granting the plaintiffsThe court rejected Centra Techs argument. The motion for default judgment in a putative securitiescourt explained that damages under Section12(a)(2) class action. The complaint alleged that nineof the Securities Act are measured by the difference defendants violated (among other laws) Section12(a)between (1) the amount of consideration the plaintiff of the Securities Act in connection with the sale oforiginally paid for the security and prejudgment unregistered securities.From July 23, 2017, through April 20, 2018, Centra Tech allegedly conducted an ICO of tokens called CTR Tokens that raised proceeds worth more thanCentra Tech argued that the court should US $32 million from thousands of investors. The ICOcalculate damages using the dollar value of allegedly raised funds for (among other things) a debitthe cryptocurrency originally paid by each card backed by Visa and Mastercard that would allowplaintiff to purchase CTR Tokens. The court cardholders to make purchases using cryptocurrency. rejected Centra Techs argument. The court held: During the course of the proceedings, all eightBecause investors purchased CTR Tokens using individual defendants were dismissed such that CentraBitcoin or Ethereum, the Securities Act requires Tech was the only remaining defendant. The courtthat Plaintiffs damages be calculated in terms denied the plaintiffs motion for class certification dueof Bitcoin or Ethereum in order to place the in part to the plaintiffs delay in filing the motion. Centra Tech did not timely respond to the pleadings in thePlaintiffs back in their pre-investment position. case and, on December 13, 2019, the court granted theThe court concluded: The Plaintiffs . . . did individual plaintiffs motion for default judgment againstnot use U.S. dollars to pay for the CTR Tokens Centra Tech and awarded those plaintiffs approximatelyand this measure of damages would not place US $2.9 million in damages. investors back in their pre-investment position.17'