Eliza Labs founder Shaw Walters said the ai16z token is "dead. Completely." after settling a class action brought by Burwick Law and handing over what he described as the rest of the project treasury and all remaining cash. In a post on X, Walters told holders there is no foundation, no buyback money, and no supply mechanism left to support the token’s price. He also said he no longer owns any ai16z tokens and plans to keep building ElizaOS software while starting over separately with the intellectual property. The lawsuit, filed on April 16, 2026 in the U.S. District Court for the Southern District of New York as Doe v. Walters, was brought on behalf of people who bought ai16z on Solana starting Oct. 24, 2024. Burwick Law said the complaint names nine defendants, including Walters, Eliza Labs, AI16Z DAO, and DAOs.fun, and includes claims tied to deceptive acts, false advertising, negligent misrepresentation, and unjust enrichment. The firm also alleged that "Marc AIndreessen" was only a facade and that a September 2025 token migration expanded supply from 1.1 billion to 11 billion, with 40% of newly created tokens routed to defendant-controlled entities.