In a significant development, the U.S. District Court in California has granted XRP investors the right to proceed with their lawsuit against Ripple, alleging the sale of unregistered securities. The court's decision, made on June 30, has allowed an investor class to proceed with their claims against the company, CEO Brad Garlinghouse, and subsidiary XRP II, reports Bloomberg Law.
Alex DovbnyaThe case, known as Zakinov v. Ripple Labs, revolves around allegations that Ripple conducted a scheme to raise hundreds of millions of dollars by selling XRP to retail investors. Judge Hamilton of the US District Court for the Northern District of California certified the investor class, finding that they met the necessary requirements for certification.
Ripple had challenged the certification, arguing that the plaintiffs failed to adequately protect the interests of the class. However, the court determined that the merits of whether XRP is a security will be consistent for all class members. Any disagreements among potential class members over the premise of the lawsuit can be addressed through the standard opt-out procedure.
Gamza KhanzadaevLegal experts have started to weigh in on the implications of this decision. Jeremy Hogan, an attorney and digital assets enthusiast, pointed out that class certification does not directly impact the ongoing SEC case against Ripple. However, he expressed curiosity about how the SEC case might influence the class action.
Furthermore, attorney Bill Morgan raised the prospect of disparate findings regarding whether Ripple sold or offered securities. Morgan noted the complex nature of the issue and the potential influence of previous judgments.
Alex Dovbnya
Dan Burgin