Ripple Faces Another Legal Battle
A new class-action lawsuit has been filed in the Northern District of California against Ripple Labs Inc., its CEO Brad Garlinghouse, and its subsidiary XRP II, LLC.
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A new class-action lawsuit has been filed in the Northern District of California against Ripple Labs Inc., its CEO Brad Garlinghouse, and its subsidiary XRP II, LLC.
This lawsuit contends that anyone who bought XRP between July 3, 2017, and June 30, 2023, and either still holds the tokens or sold them at a loss, may be eligible for compensation if the court determines that the company unlawfully sold unregistered securities.
Court Notice. Source: RippleClassAction.com
The plaintiffs argue that they made investments in XRP unaware of its uncertain legal standing. They believe that a declaration of the sales as illegal should lead to the annulment of the transactions and the reimbursement of their investments.
The lawsuit further mentions that all investors involved, whether individuals or entities, can opt out of the class action by April 5, 2024, allowing them the opportunity to pursue their own legal actions.
The U.S. Securities and Exchange Commission (SEC) has been engaged in a legal dispute with Ripple since December 2020. Ripple contested the SEC's demands and has been locked in a legal confrontation. In March 2021, Ripple's co-founders Chris Larsen and Brad Garlinghouse denied the SEC's allegations, indicating that they had not been forewarned by the regulator regarding XRP's classification and the requirement for it to be registered accordingly.
Ripple maintains that XRP, primarily serving as a tool for international transactions, should not be classified as securities.
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