Ripple Faces Class Action Lawsuit Over Alleged Illegal XRP Sales, Trial Set for October 2024

According to CryptoPotato, Ripple is facing a class action lawsuit in the Northern District of California for allegedly selling its XRP token without required legal registrations. The company, its subsidiary XRP II LLC, and CEO Brad Garlinghouse are accused of violating federal and state securities laws. The court has allowed the case to proceed as a class action on behalf of two categories: the Federal Securities Claims Class and the California State Securities Claims Class. The Federal Securities Claims Class focuses on individuals and entities who purchased XRP between July 3, 2017, and June 30, 2023, and either retained their stash or sold it at a loss. The California State Securities Claims Class covers those who bought XRP directly from the defendants or anyone selling it on their behalf. The deadline to request exclusion from the lawsuit is April 5, 2024, and a trial is scheduled for October 2024. Ripple is also involved in a legal battle with the United States Securities and Exchange Commission (SEC) over claims it conducted an unregistered $1.3 billion securities offering. The case is nearing its final phase, with a grand trial scheduled for April 23, 2024. Ripple has secured three partial court wins in the past, arguing that its native token is a currency rather than a security and does not fall under the SEC's jurisdiction. The outcome of the case could have a significant impact on the cryptocurrency industry, with potential implications for XRP's price and the digital asset market.