AI16Z and ELIZAOS Creators Face Class Action Lawsuit Over False Advertising and Unjust Enrichment

Gate News message, April 21 — Burwick Law has filed a federal class action lawsuit in the U.S. District Court for the Southern District of New York (SDNY) against the creators of AI16Z and ELIZAOS, including Walters, alleging violations of consumer protection laws, false advertising, and unjust enrichment. According to court filings, defendants are accused of leveraging Andreessen Horowitz (a16z) brand reputation to market the project and issuing the AI16Z token on Solana on October 24, 2024, which was later renamed ELIZAOS. The complaint alleges the project falsely claimed to operate autonomous AI agents that were actually manually controlled, and generated no revenue during the litigation period.

The token reached an all-time high of approximately $2.47 on January 2, 2025, with a market cap exceeding $2.6 billion, before collapsing due to large holder sell-offs. On-chain data shows the most profitable traders realized approximately $39 million in gains from the price crash.