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The war between Ripple and the SEC just got hotter! In a recent development, the U.S. District Court for the Northern District of California dismissed several major claims in a class action lawsuit against Ripple, providing a procedural victory for the company.
Judge Phyllis Hamilton granted Ripple’s motion for summary judgment on federal class claims for unregistered and state law securities claims, eliminating most class action allegations against Ripple. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed satisfaction with the dismissal.
XRP Security Status to Be Decided by Jury
Despite these dismissals, the court did not address whether XRP is a security. This crucial issue will be decided by a jury, which will determine if XRP meets the criteria of the Howey Test.
Additionally, in a civil securities lawsuit against Ripple CEO Brad Garlinghouse, a California judge has ruled that Garlinghouse will go to trial over allegations of making misleading statements in 2017 about XRP sales.
While dismissing four other claims, the U.S. District Court for the Northern District of California decided that the trial would focus on whether Garlinghouse’s actions influenced investors’ decisions, differing from Ripple’s partial victory in New York.
This trial aims to clarify if XRP should be considered a security under legal definitions.
Splitting decisions!
Judge Hamilton’s ruling contrasts with a decision by Judge Analisa Torres in the Southern District of New York, who ruled that XRP was not a security when sold to retail investors, as it did not satisfy all elements of the Howey Test. Legal expert Fred Rispoli noted the potential for settlement in the California case due to low damages and the risk of a negative jury verdict for Ripple.
Upcoming Deadlines and Motions
Both parties were ordered to reconsider their motions to seal parts of their briefs and were given until July 8, 2024, to file a narrowed motion to seal specific exhibits. The court’s final decision on these motions will follow.
Impact on XRP Price
XRP is nearing the local support level of $0.4922 despite a slight rise. If it breaks this level, it could fall to around $0.4850. On a larger time frame, XRP trades sideways between $0.4850 and $0.50, with no clear dominance by buyers or sellers. Similarly, on the weekly chart, XRP is within a wide channel between $0.4309 and $0.5714, with low volume indicating low chances of high volatility until the end of the month. XRP is currently trading at $0.4947.
Although Ripple won the case partially by dismissing several claims, the XRP status remains in question and will be decided by the jury. Many believe the ruling will have a bigger impact on XRP price. Stay tuned with us to know more!