$20 million settlement reached in lawsuit for former Bitwise employees
FRESNO, Calif. (KFSN) -- Lawyers representing former Bitwise employees have reached settlement in a class action lawsuit.
Two weeks ago Bitwise co-founders Irma Olguin Junior and Jake Soberal pleaded guilty in the company's $115 million fraud scheme.
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Federal prosecutors say Olguin and Soberal worked together to defraud investors and lenders.
The scheme continued until May of last year when Bitwise ran out of money and the company collapsed.
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Lawyers representing the roughly 900 employees that were laid off say they reached a settlement of approximately $20 million.
"It's important for folks to know that class actions usually take years, the fact that we got this settlement in place this quickly it's phenomenal it's really record setting but there's still a lot left to do,'' Roger Bonakdar, the lawyer representing former Bitwise Employees, said.
Bonakdar hopes to start distributing settlement funds by the end of the year.
The Bitwise co-founder's are due back in court on November 6 for sentencing.
The two could now face up to 40 years in federal prison and half a million dollars in fines.
