A Class-Action Lawsuit Against Ripple By Retail XRP Buyers

  • The U.S. District Judge Phyllis Hamilton of the Northern District of California permitted retail XRP buyers to ensure a class-action lawsuit against Ripple.
  • The class-action was filed by a one time investor Bradley Sostack against Ripple CEO Brad Garlinghouse and its XRP subsidiary.
  • The amended complaint was filed in August 2019 and was lined up last Wednesday.

Last Wednesday proved a vicious cycle for Ripple, the third most powerful coin market player. The U.S. District Judge Phyllis Hamilton of the Northern District of California permitted retail XRP buyers to ensure a class-action lawsuit against Ripple.

The Honorable Judge notified that this case comprises claims under federal law though some claims got discharged under California state law. The class-action was filed by a one time investor Bradley Sostack against Ripple CEO Brad Garlinghouse and its XRP subsidiary whose hearing was held in mid-January. 

The case story

The prime defendant was not only Sostack but it includes several customers who think Ripple as security and failed to register properly. They also quoted that the executives were misleading with the customers by showing false currency and are engaged in false advertisement too.

The investors also added to this matter that they lost money after selling their XRP tokens as they were deceived by Ripple’s promotional announcement. The following amended complaint was filed in August 2019 and was lined up last Wednesday.

Above all this, a great percentage of Ripple is still owned by the investors who control XRP from the top-level who still believe that XRP is not necessarily a decentralized coin. 

The outcomes of this issue

During the latest hearing, the Honorable Judge found that the case filed by the Plaintiff was convincing as it was filed after a specified deadline.

On the contrary,  the defendants responded to this ruling that they had come up with diverse offers in 2013 and a great sale in May 2015 with the U.S.Attorney’s Office for the Northern District of California, but it does not pitch the general investors while offering to sell XRP.

This lawsuit is stretching with a combination of similar cases and during the second year, now, the situation is that the case has been shifted from state court to federal.

As a result of this catastrophe, the market of Ripple got into low tides this week. Per Bloomberg, XRP has dropped about 20%. However, after a big loss of $3 billion market capitalization, XRP holds the position of third-largest digital-asset in the coin market.

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Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.

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