Emerging reports in the cryptocurrency sector indicate a potential new class action against Ripple concerning its sales of the XRP token. A published document on a platform formerly known as Twitter has garnered considerable attention, fueling speculations about the ongoing litigation.
New Legal Challenges for Ripple
Fox Business reporter Eleanor Terrett brought to light messages regarding a lawsuit directed at Ripple and its CEO, Brad Garlinghouse. These messages hint at legal action for an alleged infraction of both federal and California securities laws related to the selling of XRP. Terrett clarified that this lawsuit isn’t new but is rather an ongoing issue with the case number No. 18-cv-06753-PJH. Research into the matter hints that the recent document could reflect updates in the Ripple versus Zakinov lawsuit, which originally surfaced in May 2018.
Expanding the Scope of Litigation
The firm Susman Godfrey LLP, representing plaintiff Zakinov and his associates, has introduced new elements into the case by releasing a document and creating a website aimed at assembling a group of claimants. They seek to involve individuals who purchased XRP between July 3, 2017, and June 30, 2023, and have either retained or sold at a loss. The lawsuit alleges unregistered offers and sales of digital assets, in breach of security laws, against Ripple Labs, Inc., its subsidiary, and Garlinghouse.
While the case continues to develop, there are indications that the trial might commence in October 2024. Meanwhile, XRP’s price was noted to have increased by 2% recently, trading at $0.5618, while Bitcoin maintained its position around the $56,700 mark.
