Court Grants Class Certification to Investors in Securities Lawsuit Against Ripple Labs Inc.

Von Krypto News Österreich

Ein US-Bezirksgericht hat eine Gruppe von Anlegern im Rahmen einer Wertpapierklage gegen das bekannte Kryptowährungsunternehmen Ripple Labs Inc. den Status einer Sammelklägergruppe zuerkannt. Richterin Phyllis J. Hamilton hat bestätigt, dass die Gruppe alle notwendigen Voraussetzungen für die Zertifizierung erfüllt, so dass der Prozess fortgesetzt werden kann. Der Hintergrund der Klage besteht darin, dass Ripple Labs durch den Verkauf des virtuellen Tokens XRP Hunderte von Millionen Dollar von Kleinanlegern eingenommen hat und dabei gegen die Wertpapiergesetze des Bundes und der Länder verstoßen haben soll. Die Kläger behaupten, dass XRP als unregistriertes Wertpapier betrachtet werden sollte. Die Klage richtet sich gegen Ripple …
A US district court has granted a group of investors as part of a securities action against the well-known cryptocurrency company Ripple Labs Inc. Judge Phyllis J. Hamilton has confirmed that the group meets all the necessary requirements for certification so that the process can be continued. The background of the lawsuit is that Ripple Labs has taken hundreds of millions of dollars of small investors through the sale of the virtual tokens XRP and is said to have violated the federal and state securities laws. The plaintiffs claim that XRP should be regarded as unregistered security. The lawsuit is directed against Ripple ... (Symbolbild/KNAT)

A US district court has granted a group of investors as part of a securities action against the well-known cryptocurrency company Ripple Labs Inc. Judge Phyllis J. Hamilton has confirmed that the group fulfills all the necessary requirements for certification so that the process can be continued.

The background of the lawsuit is that Ripple Labs has taken hundreds of millions of small investors through the sale of the virtual token XRP and is said to have violated the federal and the federal states' securities laws. The plaintiffs claim that XRP should be regarded as unregistered security. The lawsuit is directed against Ripple Labs, CEO Bradley Garlinghouse and the subsidiary XRP II.

Despite the objections of Ripple Labs and his subsidiaries, judge Hamilton decided that the group of investors fulfills the four conditions for certification. It acknowledges that the common questions of the class would have priority over the individual matters. The court has rejected Ripple Labs's argument that the plaintiffs would not adequately protect the interests of the class. The opt-out process can clear up any discrepancies within the class. The court has also rejected Ripple Labs' claims that the status of one of the plaintiffs, Bradley Sostack, affects his credibility when Daytrader affects or its claims are atypical for those of the class.

ripple Labs argued that individual questions were more important than mutual questions about the authority of the lawsuit. However, the court dismissed this argument because no specific bilateral transactions or decentralized crypto exchange transactions were called that would raise individual questions. It emphasized that the question of whether XRP is to be classified as a securities is important for all members of the collecting plaintiff.

The court has approved two classes for federal and California securities lawsuits. However, the classes are limited to people who bought XRP in the USA during the relevant collective period from July 3, 2017 to June 30, 2023. This restriction ensures that investors based in the USA are only included in the collective action if it is successful.

After the message was announced, XRP is traded around the $ 0.477 mark. At a 24-hour perspective, the course dropped by 2.04 % and rose by 0.91 % on a weekly basis.

The certification of the investor group represents an important milestone in the securities action against Ripple Labs. It enables the plaintiffs to proceed together and to have a stronger argument against the company. The decision emphasizes that the common questions predominate and the claims within the group are equivalent.

In the further course of the process, it will be interesting to see how the court evaluates the allegations and whether it decides that XRP should be classified as securities.