PANews reported on November 11 that according to Cointelegraph, two OpenSea users accused the NFT trading platform OpenSea of selling unregistered securities, but they abandoned the proposed class action lawsuit after the judge allowed the company to request arbitration.
On November 7, Anthony Shnayderman and Itai Bronshtein voluntarily dismissed their securities lawsuit against OpenSea operator Ozone Networks in a Florida federal court after Judge Cecilia Altonaga allowed OpenSea to file a motion to compel the two to arbitrate in a ruling last month. OpenSea insisted that the two users accept arbitration and claimed in documents filed in October that they agreed to its terms of use that all claims would be resolved by an arbitrator - including whether arbitration should be conducted in the first place. In the October filing, OpenSea also said that it "intends to move expeditiously to compel the plaintiffs to arbitrate their claims in a forum agreed to by both parties" and that it would appeal any court rejection, thereby staying the case. An excerpt from OpenSea's October arguments stated that users agreed to resolve disputes through JAMS, an alternative dispute resolution service. The two plaintiffs' lawyer, Adam Moskowitz of the Moskowitz Law Firm, said they had "no choice but to dismiss the pending case."
