Audet, et al. v. Garza, et al., Case No. 3:16-cv-00940 (MPS)

Frequently Asked Questions

  1. Why did I get the Notice of Pendency of Class Action (the “Notice”)?

    The United States District Court for the District of Connecticut (the “Court”) authorized the Notice to inform you of a class action lawsuit that is now pending in the Court under caption Audet, et al. v. Garza, et al., No. 3:16-cv-00940 (MPS) (the “Action”) alleging that GAW Miners, LLC and ZenMiner, LLC committed violations of Section 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 promulgated thereunder; violations of Sections 36b-29(a)(1) and (2) of the Connecticut Uniform Securities Act; and common law fraud. The Action separately alleges that Stuart A. Fraser committed violations of Section 20(a) of the Securities Exchange Act of 1934 and Sections 36b-29(a)(2) and 36b-29(c) of the Connecticut Uniform Securities Act.

    The Court caused the Notice to be sent to all persons or entities who, between August 1, 2014 and January 19, 2015, may have (1) purchased Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC; or (2) acquired Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC, by converting, upgrading, or exchanging other products sold by GAW Miners, LLC and/or ZenMiner, LLC because, if you purchased or acquired the products listed above from GAW Miners, LLC and/or ZenMiner, LLC during the period, you may be a member of the Class whose rights might be affected by this Action.

    To view a copy of the Notice, please click here.

    Back To Top
  2. Why is this a class action?

    A class action is a type of lawsuit in which one or several individuals or entities prosecute claims on behalf of all members of a group of similarly situated persons and entities to obtain monetary or other relief for the benefit of the entire group, known as a class. Class actions are used to decide legal and factual issues that are common to all members of a class.

    Back To Top
  3. What is this lawsuit about?

    The lawsuit is a class action lawsuit pending in the United States District Court for the District of Connecticut alleging that GAW Miners, LLC and ZenMiner, LLC committed violations of Section 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 promulgated thereunder; violations of Sections 36b-29(a)(1) and (2) of the Connecticut Uniform Securities Act; and common law fraud. The Action separately alleges that Stuart A. Fraser committed violations of Section 20(a) of the Securities Exchange Act of 1934 and Sections 36b-29(a)(2) and 36b-29(c) of the Connecticut Uniform Securities Act.

    The defendants include GAW Miners, LLC and ZenMiner, LLC (the “Companies”) and Stuart A. Fraser, (together with the Companies, “Defendants”). Plaintiffs named Homero Joshua Garza as a defendant in the initial complaint but dismissed him from the Action as part of an agreement to cooperate with Plaintiffs. Defendants GAW Miners, LLC and ZenMiner, LLC have defaulted. The sole remaining defendant, Mr. Fraser, has denied the claims and maintains that he is not liable for the claims alleged against him. Excluded from the Class certified by the Court are any defendants, any parent, subsidiary, affiliate, or employee of any defendant, any co-conspirator, and any governmental agency.

    Plaintiffs allege, among other things, that the Companies made false and misleading statements to potential investors about defendants’ virtual currency mining operations. Plaintiffs allege that that the Companies sold a progressive array of products and investment contracts to investors that they claimed would yield profits from mining or otherwise investing in virtual currency. Plaintiffs allege that, because the Companies sold far more computing power than they owned and dedicated to virtual currency mining, the Companies owed investors a return larger than any actual return the Companies were making on their limited mining operations.

    Plaintiffs allege that Mr. Fraser materially assisted the Companies and exercised control over them such that he is liable for any injuries caused by the misconduct allegedly perpetrated by the Companies described above. Mr. Fraser denies all allegations against him.

    At this time there has been no determination that Mr. Fraser is liable for any of the conduct alleged.

    By Order dated July 8, 2019, the Court certified the class as:

    All persons or entities who, between August 1, 2014 and January 19, 2015, (1) purchased Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC; or (2) acquired Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC, by converting, upgrading, or exchanging other products sold by GAW Miners, LLC and/or ZenMiner, LLC.

    The Court also appointed Plaintiffs Denis Marc Audet, Michael Pfeiffer and Dean Allen Shinners as class representatives and Susman Godfrey L.L.P. and Izard, Kindall & Raabe, LLP as Class Counsel. The Court has not yet set a trial date.

    Back To Top
  4. How do I know if I am part of the Class?

    You may be included in the Class if, between August 1, 2014, and January 19, 2015, you (1) purchased Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC; or (2) acquired Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC, by converting, upgrading, or exchanging other products sold by the GAW Miners, LLC and/or ZenMiner, LLC.

    Back To Top
  5. Are there exceptions to being included?

    Yes. Excluded from the Class certified by the Court are any defendants, any parent, subsidiary, affiliate, or employee of any defendant, any co-conspirator, and any governmental agency.

    Back To Top
  6. What if I am still not sure if I am included?

    If you are still not sure whether you are included, you can ask for help by calling toll-free 1-855-964-0522 or emailing info@GAWMinersClassAction.com. You may also write us at:

    Audet, et al. v. Garza, et al.
    Notice Administrator
    P.O. Box 3578
    Portland, OR 97208-3578

    Back To Top
  7. How can I get a payment? When would I get my payment?

    At this time the Court has not set a trial date and a settlement has not been reached.

    If the lawsuit is eventually resolved (either through judgment or settlement), and if you wish to share in any Class recovery, you will be required to prove your membership in the Class with evidence, among other things, that, between August 1, 2014, and January 19, 2015, you (1) purchased Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC; or (2) acquired Hashlets, Hashpoints, HashStakers, or Paycoin from GAW Miners, LLC and/or ZenMiner, LLC, by converting, upgrading, or exchanging other products sold by GAW Miners, LLC and/or ZenMiner, LLC.

    You may also be required to submit information substantiating any losses you suffered. In addition, Mr. Fraser may seek to prove that you had knowledge of the defendants’ alleged misrepresentations or omissions.

    Back To Top
  8. What am I giving up to stay in the Class?

    If you choose to remain in the Class, you will be bound by all orders and judgments in this Action, whether favorable or unfavorable to you. If the Class prevails on the common issues, or if a settlement is reached, you may be able to recover an award. However, if Mr. Fraser prevails, you may not pursue a lawsuit against him on your own behalf with regard to any of the issues decided in this Action. Your interests are being represented by the representatives of the Class and Class Counsel.

    Back To Top
  9. How do I get out of the Class?

    To exclude yourself from the Class, you must send a signed letter by email or mail stating that you “request exclusion” from the Class in “Audet, et al. v. Garza, et al. No. 3:16-cv-00940.”

    Be sure to include your name, address, email address, telephone number, and the signature of the person or entity requesting exclusion or an authorized representative. If possible, please also provide the transactional details of (1) the Hashlets, Hashpoints, HashStakers, or Paycoin you purchased from GAW Miners, LLC and/or ZenMiner, LLC; and/or (2) the Hashlets, Hashpoints, HashStakers, or Paycoin you acquired from GAW Miners, LLC and/or ZenMiner, LLC, by converting, upgrading, or exchanging other products sold by the GAW Miners, LLC and/or ZenMiner, LLC.

    You must email your exclusion request to info@GAWMinersClassAction.com by October 28, 2019, or mail your exclusion request, postmarked no later than October 28, 2019 to:

    Audet, et al. v. Garza, et al.
    Notice Administrator
    P.O. Box 3578
    Portland, OR 97208-3578

    Back To Top
  10. If I do not exclude myself, can I sue the Defendants for the same thing later?

    No. You will be bound by all orders and judgments in this Action and you may not pursue a lawsuit against the Defendants on your own behalf with regard to any of the issues decided in this Action.

    Back To Top
  11. If I exclude myself, can I get money from the lawsuit?

    No. If you choose to be excluded from the Class, you will not be bound by any judgment in this Action, nor will you be eligible to share in any recovery that might be obtained in this Action. Should you choose to be excluded, or in other words, opt out of the Action, you may individually pursue any legal rights that you may have against any of the defendants.

    Back To Top
  12. Do I have a lawyer in this case? How will the lawyers be paid?

    Class Counsel in this Action are Susman Godfrey L.L.P and Izard, Kindall & Raabe, LLP.

    You will not be personally responsible for attorneys’ fees or costs unless you hire your own individual attorney. Class Counsel has agreed to represent the Class on a contingent fee basis, which means that it will be awarded fees and costs only if it succeeds in obtaining a recovery from defendants. Any attorneys’ fees will be awarded by this Court from the settlement or judgment, if any, obtained on behalf of the Class.

    Back To Top
  13. Can I retain my own lawyer in this action?

    Yes. You may remain a member of the Class and elect to be represented by counsel of your own choosing. If you retain separate counsel, you will be responsible for that counsel’s fees and expenses and such counsel must enter an appearance on your behalf by filing a Notice of Appearance with the Court and mailing it to Class Counsel at the address set forth below on or before October 28, 2019.

    Audet, et al. v. Garza, et al.
    Class Counsel
    P.O. Box 3578
    Portland, OR 97208-3578

    Back To Top
  14. What happens if I do nothing at all?

    If you fall within the Class definition and are not otherwise excluded, you will automatically be included in the Class unless you request exclusion in accordance with the procedure set forth in the Notice, available here. You will be bound by all orders and judgments in this Action, whether favorable or unfavorable to you. If the Class prevails on the common issues, or if a settlement is reached, you may be able to recover an award. However, if the Defendants prevail, you may not pursue a lawsuit against him on your own behalf with regard to any of the issues decided in this Action.

    PLEASE DO NOT CALL OR WRITE THE COURT OR THE OFFICE OF THE CLERK FOR INFORMATION OR ADVICE.

    Back To Top