According to news emerging in some crypto sources today, it was suggested that Ripple could be facing a new class action lawsuit due to its XRP sales. A document published on X (formerly known as Twitter) also attracted significant attention.
Latest Developments in Ripple
Recently making headlines in the crypto world, especially during the spot Bitcoin ETF process, Fox Business journalist Eleanor Terrett said the following:
I’m receiving some messages about this class action lawsuit against Ripple and Brad Garlinghouse. It appears to be a notice to investors about a case being heard in the Northern District of California, alleging that the defendants offered and sold XRP in violation of federal and California securities laws.
Terrett clarified that this is not a new class action process against Ripple. She noted that the case number is No. 18-cv-06753-PJH.
Upon further investigation, the prominent figure suggested that the mentioned file could be related to the Ripple vs. Zakinov case, which dates back to May 2018. The newly published document could be interpreted as the current status of the case.
All Developments in Ripple’s New Case
The law firm Susman Godfrey LLP, representing Zakinov and his group, has brought a new dynamic to the ongoing legal process and published a document on the matter. In addition, a website named RippleClassActioncom was also launched.
The initiative put forth by the team seems to aim at reaching out to members who purchased XRP between July 3, 2017, and June 30, 2023, and either held onto their XRPs or sold them at a loss, to expand the group.
A document published on the subject clearly summarizes the situation as follows:
A lawsuit is ongoing in the United States District Court for the Northern District of California against Ripple Labs, Inc.; Ripple’s subsidiary XRP II, LLC; and Bradley Garlinghouse. The lawsuit alleges that the Defendants offered and sold the XRP digital asset without registration, violating federal and state securities laws.
While developments continue, there are statements suggesting that the trial could start in October 2024.
As of the time of writing, the price of XRP was trading at $0.5618, up 2%. Bitcoin continued to trade at the $56,700 level.
