Several crypto news outlets are reporting today that Ripple has been hit with a new class action lawsuit over its XRP sales. The backdrop is a newly published document which made the round on X (formerly Twitter).
Fox Business journalist Eleanor Terrett stated, “I’ve been getting some messages about this class action lawsuit against Ripple and Brad Garlinghouse. This appears to be a notice to investors about a lawsuit pending in a Northern California district court that claims the defendants violated federal and California securities laws by offering selling XRP.”
Importantly, this is not a new class action lawsuit against Ripple. The case number in the document is No. 18-cv-06753-PJH. When checking this, one can evaluate that this is the Ripple vs. Zakinov case which dates back to May 2018. The newly released document has to be seen in context of the current status of the lawsuit.
Over nine months ago, the class led by Zakinov was granted class status. This certification paves the way for the class-action lawsuit alleging that the company unlawfully sold XRP as an unregistered security. Lead plaintiff Vladi Zakinov, who held XRP for a brief period, seeks to represent a class of XRP owners who allege that XRP is a security issued by Ripple.
In January this year, the hearing about the “Motion to Approve the Form and Manner of Class Notice” took place. This procedural step was crucial for ensuring that all individuals potentially affected by this lawsuit are properly and equitably informed about the case, their rights, and any necessary actions they may need to take.
Ripple Class Action: What’s New?
Adding a new layer to this ongoing legal saga, the law firm Susman Godfrey LLP, representing Zakinov and the class, released the document in question and launched a website, www.RippleClassAction.com.
The initiative aims to broaden the class by reaching out to potential members who purchased XRP between July 3, 2017, and June 30, 2023, and either retained their XRP or sold it at a loss. The website serves as a hub for disseminating information about the lawsuit, outlining the claims against Ripple, defining the classes involved, and explaining the rights and options available to affected individuals.
The document clearly states, “A lawsuit is pending in the United States District Court for the Northern District of California against Ripple Labs, Inc.; Ripple’s subsidiary XRP II, LLC, and Bradley Garlinghouse. The lawsuit claims that Defendants have offered and sold the digital asset XRP without registration in violation of federal and state securities laws.”
Furthermore, the document elaborates on the nature of a class action lawsuit, the specific allegations against Ripple, and the defendants’ stance, providing a comprehensive overview for those impacted. It emphasizes that the court has not yet reached a verdict on the claims, underscoring the pending trial as the next significant phase where these issues will be addressed in depth.
Notably, the trial is currently scheduled to commence in October 2024.
At press time, XRP traded at $0.55301.
Featured image created with DALL·E, chart from TradingView.com
