Individuals and entities who purchased Stoner Cats NFTs from Stoner Cats 2 in the July 27, 2021, offering may be eligible to submit a claim for a cash payment from a class action settlement.
The Securities and Exchange Commission ordered Stoner Cats 2 LLC to pay a $1,000,000 civil money penalty after finding the company conducted an unregistered offering of Stoner Cats NFTs. The SEC created the Stoner Cats Fair Fund so it can distribute that penalty, plus interest, to eligible investors.
Who can file a claim?
Eligible claimants include individuals and entities who purchased Stoner Cats NFTs directly from Stoner Cats 2 LLC on July 27, 2021.
How much can class members get?
Eligible class members can receive a recognized loss payment from the Stoner Cats Fair Fund based on the recognized loss calculation in the plan of distribution. The fund administrator will calculate the recognized loss per NFT using the purchase price, the sale price (if any), any royalty paid to Stoner Cats 2 LLC and the date of sale or holding period relative to Sept. 13, 2023, and Dec. 12, 2023.
The fund administrator will issue distribution payments only when the calculated distribution equals or exceeds $20.
If total recognized losses exceed the value of the fund, the fund administrator will reduce payments on a pro rata basis.
How to claim a cash distribution payment
To receive a payment, class members must submit a claim form by the May 23, 2026, deadline. They can file a claim online or print and mail the PDF claim form to the fund administrator.
Settlement administrator’s mailing address: Stoner Cats Fair Fund Administrator, P.O. Box 2930, Portland, OR 97208-2930
Required proof or documentation
- To submit a claim, all claimants must provide the last four digits of their Social Security number or taxpayer identification number.
- To verify purchase eligibility, claimants must provide documentation showing the total number of Stoner Cats NFTs purchased on July 27, 2021.
- To verify sales, claimants must provide the quantity sold, sale date and net proceeds for any NFTs sold on or before Dec. 12, 2023.
- To complete the claim, claimants must attach documentation supporting each transaction listed in the claim form.
$1 million fair fund
The $1,000,000 fund includes:
- Administration costs: To be determined
- Payments to eligible class members: Determined by number of valid claims and distribution calculations
Important dates
- Deadline to file a claim: May 23, 2026
When is the Stoner Cats fair fund payout date?
The fund administrator will distribute payments to class members with valid claims after it completes claim reviews, issues claim status notices, resolves any deficiencies and finalizes determinations.
Why did the SEC enforce this civil penalty?
This enforcement action alleged Stoner Cats 2 LLC conducted an unregistered securities offering when it sold 10,320 Stoner Cats NFTs on July 27, 2021. The SEC found the company failed to register the offering and did not qualify for an exemption, which resulted in a violation of federal securities laws.
Stoner Cats 2 LLC agreed to pay a $1,000,000 civil money penalty, and the SEC established the Stoner Cats Fair Fund to distribute the penalty to harmed investors.
Sources
- Plan notice
- Claim form
- Stoner Cats Fair Fund FAQ
