Cases & Investigations
$HAWK memecoin

Wolf Popper and Burwick Law filed a complaint on behalf of 17 plaintiffs individually as well as a complaint on behalf of a class of investors who purchased the $HAWK token, which is the memecoin associated with Haliey Welch, the “Hawk Tuah Girl.” The defendants are Alex Larson Schultz, Overhere Limited, Clinton So, and Tuah The Moon Foundation.  

The first lawsuit, filed on December 19, 2024, in the United States District Court for the Eastern District of New York, alleges violations of federal securities laws.

The $HAWK token, launched on December 4, 2024, experienced a dramatic rise and fall within hours of its debut.  Initially valued at $16.69 million during its pre-sale period, the $HAWK token’s market capitalization surged to $491 million shortly after launch.  However, this meteoric rise was short-lived, as the $HAWK token’s value plummeted by over 90% within hours, dropping below $100 million.  This extreme volatility left many investors, particularly first-time cryptocurrency investors drawn in by Haliey Welch’s involvement, facing significant financial losses. 

At the heart of the lawsuit is the allegation that the $HAWK token constitutes an unregistered security.  The complaint states, “[t]he $HAWK Token exhibits all the characteristics of an unregistered security under established legal precedent.”  The plaintiffs argue that the defendants leveraged Haliey Welch’s celebrity status to create “a speculative frenzy that caused the [$HAWK] Token’s market value to spike shortly after launch, reaching a significant market capitalization.”  As alleged in the complaint, the defendants engaged in actions that potentially violated federal securities laws.  The lawsuit claims that the $HAWK token exhibits characteristics of an unregistered security, and was offered and sold to the public without proper registration with the SEC.  

Defendants marketed the token as a groundbreaking cryptocurrency project, fostering expectations of profit among investors based on the efforts of Haliey Welch and the project team.  The complaint alleges that the defendants made many promotional statements encouraging people to buy the $HAWK token.  According to the complaint, “Welch's promotional efforts emphasized the [$HAWK] Token’s groundbreaking nature and inclusivity while creating an expectation that it would redefine the crypto space.”  This marketing approach, the plaintiffs allege, led many first-time cryptocurrency investors to participate based on Haliey Welch’s involvement and the project’s promised roadmap.  These actions, if proven, could constitute violations of Sections 5 and 12(a)(1) of the Securities Act of 1933.

Wolf Popper LLP and Burwick Law are seeking to recover on behalf of the plaintiffs’ and the class’s purchases of $HAWK tokens.  

The cases are Albouni et al. v. Schultz et al., No. 1:24-cv-8650 and Rodriguez Mena v. Schultz, et al., No. 1:24-cv-8695, pending in the U.S. District Court for the Eastern District of New York.  

If you believe you have suffered damages from the purchase of the $Hawk memecoin, please contact https://www.burwick.law/newclient. 
 

• Phone: Chet B. Waldman – 212-451-9624
• Phone: Matthew Insley-Pruitt – 212-451-9621
• Phone: Terrence Zhang – 212-451-9663
• Email: Outreach@wolfpopper.com
• New Client SignUps: https://www.burwick.law/newclient