u.today
Ripple is facing another class action lawsuit.
According to a recent notice, the lawsuit has been filed in the Northern District of California, alleging that the San Francisco-based company and its CEO, Bradley Garlinghouse, along with its subsidiary XRP II, LLC, have violated federal and California securities laws by offering and selling the digital asset XRP without proper registration.
Legal allegations
The lawsuit claims that Ripple engaged in the unauthorized sale of XRP, bypassing the mandatory registration required under both federal and state securities laws.
This class action aims to represent two distinct classes: a Federal Securities Claims Class and a California State Securities Claims Class, encompassing all persons or entities who purchased XRP from July 3, 2017, through June 30, 2023, and have either retained the asset or sold it at a loss.
Ripple and the co-defendants have denied any wrongdoing, asserting that they were not required to register XRP as a security. This has potentially set the stage for a contentious legal battle.
Important decisions
Investors and entities affected by the lawsuit are faced with important decisions regarding their legal rights and options.
Those within the class action have until Apr. 5 to request exclusion from the lawsuit, a step that would allow them to pursue independent legal action against Ripple.