New Class Action Lawsuit Filed Against Ripple Over XRP Sales
A recently published document has sparked reports of a new class action lawsuit against Ripple over its sales of XRP. The lawsuit alleges that Ripple and its CEO, Brad Garlinghouse, violated federal and California securities laws by offering and selling XRP. However, it is important to note that this is not a new case, but rather an update on an existing lawsuit that dates back to May 2018.
The Background of the Lawsuit
The case in question is known as Ripple vs. Zakinov and was filed by lead plaintiff Vladi Zakinov in May 2018. The lawsuit claims that Ripple unlawfully sold XRP as an unregistered security. In January of this year, the court granted class status to Zakinov’s class-action lawsuit, allowing it to proceed.
What’s New in the Lawsuit?
In addition to the ongoing legal proceedings, the law firm Susman Godfrey LLP, representing Zakinov and the class, released a document outlining the claims against Ripple and launched a website called RippleClassAction.com. The website aims to reach out to potential members of the class who purchased XRP between July 3, 2017, and June 30, 2023, and either retained their XRP or sold it at a loss.
The Lawsuit Details
The document released by Susman Godfrey LLP states that the lawsuit alleges that Ripple Labs, Inc., Ripple’s subsidiary XRP II, LLC, and Bradley Garlinghouse offered and sold XRP without proper registration, violating federal and state securities laws.
It also provides an overview of the nature of a class action lawsuit, outlines the specific allegations against Ripple, and explains the defendants’ stance. The document emphasizes that the court has not yet reached a verdict on the claims and that the trial, scheduled for October 2024, will be the next significant phase of the case.
Implications for XRP
While this new update may cause some uncertainty in the market, it is important to note that XRP is still being traded and has a current value of $0.55301. The outcome of the lawsuit will ultimately determine the future of XRP and Ripple’s legal standing.
Hot Take: Ripple Faces Ongoing Legal Challenges
Ripple’s legal battles continue as it faces a class action lawsuit over its sales of XRP. The lawsuit alleges that Ripple violated securities laws by offering and selling XRP without proper registration. While this is not a new case, the recent update serves as a reminder of the ongoing legal challenges Ripple is facing.
The class action lawsuit, led by Vladi Zakinov, seeks to represent a class of XRP owners who believe that XRP is a security issued by Ripple. The lawsuit is currently in the trial phase, with proceedings scheduled to begin in October 2024. Until then, Ripple’s legal standing and the future of XRP remain uncertain.
It is important for investors and crypto enthusiasts to closely follow these legal developments as they could have significant implications for Ripple and the broader cryptocurrency industry. As with any investment, it is crucial to stay informed and make decisions based on accurate and up-to-date information.
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