Burwick Law has initiated a federal class action lawsuit in the Southern District of New York against AI16Z and ELIZAOS creator Walters. The legal action follows the token's market capitalization reaching over $2.6 billion at its peak. According to NS3.AI, the complaint accuses the defendants of consumer protection violations, false advertising, and unjust enrichment related to claims that the project's AI agent could autonomously invest. Legal documents reveal that the token was initially launched as AI16Z on October 24, 2024, and subsequently rebranded as ELIZAOS. The token's value peaked at approximately $2.47 on January 2, 2025, before experiencing a decline due to sell-offs by large holders.