Dispute Regarding Class Status Granted to Ripple Investors
The 2018 class action lawsuit against Ripple Labs over the sale of XRP has taken a significant step forward. The investor class has been granted certification by Judge Phyllis J. Hamilton, allowing the lawsuit to proceed against the company. Ripple CEO Bradley Garlinghouse and subsidiary ‘XRP II’ contested the certification, but the judge determined that the class met the requirements for certification.
Key Points:
– Ripple Labs is facing a securities lawsuit claiming they raised hundreds of millions of dollars by selling XRP to retail investors.
– The lead plaintiff purchased and sold XRP during a two-week window in 2018, expecting the token’s price to increase based on Ripple’s efforts.
– Defense lawyers argue that the class representative cannot adequately represent the interests of XRP buyers who disagree with the premise of the case.
– The certification allows the plaintiffs to proceed collectively, presenting a stronger case against Ripple.
– The outcome of the SEC’s case against Ripple could potentially impact the class action lawsuit.
Stronger Case Against Ripple?
The certification of the investor class in the XRP lawsuit is a significant development. It allows the plaintiffs to proceed collectively, presenting a stronger case against Ripple Labs. However, the outcome of the SEC’s case against Ripple could potentially impact the class action lawsuit. If XRP is deemed a security, both the sellers and the buyers of the token could face potential harm. The judge emphasized that the Howey test is objective and it will be up to the courts to decide the security claim. The merits issue of whether XRP is a security will be the same for all class members, regardless of their individual expectations.
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