Ripple Faces Class Action Lawsuit Amid Ongoing Legal Battle with SEC

Ripple's Legal Challenges Expand

Ripple finds itself entangled in a new legal battle as a pending class action lawsuit in the Northern District of California alleges violations of federal and state securities laws. The lawsuit targets Ripple, its subsidiary XRP II LLC, and CEO Brad Garlinghouse for allegedly offering and selling XRP without proper registration with authorities.

Class Action Status Granted

The court has granted class action status for two categories: the Federal Securities Claims Class and the California State Securities Claims Class. The former covers individuals and entities who purchased XRP from July 3, 2017, through June 30, 2023, while the latter involves direct buyers from Ripple or its representatives.

Exclusion Options for Affected Parties

Affected parties have the option to remain in the lawsuit for potential settlement benefits or opt out to pursue separate legal action against Ripple. The deadline for exclusion requests is April 5, 2024, with a trial scheduled for October 2024, where plaintiffs must substantiate their claims.

Ripple's Ongoing Battle with the SEC

Ripple's legal woes extend beyond the class action lawsuit, as it continues to contest allegations by the SEC since December 2020. The SEC accused Ripple of conducting an unregistered securities offering through the sale of XRP. Ripple contends that XRP is a currency, not a security, thus outside the SEC's jurisdiction.

Final Trial Approaches

The Ripple-SEC legal saga approaches a critical juncture, with a grand trial set for April 23, 2024. Ripple secured partial victories last year, including rulings that its sales to secondary trading platforms did not constitute investment contracts. However, a recent court order mandated Ripple to disclose financial records for 2022 and 2023, as requested by the SEC.

Implications for the Cryptocurrency Industry

The outcome of Ripple's legal battles holds significant implications for the cryptocurrency industry. A favorable ruling for Ripple could bolster XRP's price and market sentiment, while an adverse outcome may lead to stricter regulations, impacting the sector's growth trajectory.

Ripple Legal Battles

Ripple faces expanding legal challenges, including a class action lawsuit alleging securities law violations. The lawsuit, granted class action status, covers XRP purchasers from 2017 to 2023. Affected parties can opt out by April 5, 2024. Ripple also confronts SEC allegations, with a final trial set for April 23, 2024. The outcomes hold major implications for the cryptocurrency industry's future.