A Florida resident has filed a class-action lawsuit against Ripple Labs and the company’s CEO Brad Garlinghouse, alleging violations of Florida securities laws and unlawful enrichment.
According to Tyler Toomey, the defendants knew that the XRP token was a security but misled investors with false statements.
The plaintiff noted that Ripple did not register with the Florida Office of Financial Regulation prior to selling the token to state residents. Toomey contends that the sales volume amounted to “millions of dollars”, and the defendants earned illicit profits.
He personally bought 135 XRP in November 2020 for $97.80. In December Toomey sold the tokens in two installments, incurring a loss of $48.56, or nearly 50%.
The investor seeks damages and litigation costs, a finding of liability for the violations cited in the complaint, the imposition of appropriate penalties and a ban on further activity.
Under the Federal Rules of Civil Procedure, Toomey has demanded a jury trial on all issues related to the suit.
Ripple Toomey by ForkLog on Scribd
In December, the U.S. Securities and Exchange Commission charged Ripple with selling unregistered securities in the form of XRP worth $1.3 billion. Preliminary hearings were scheduled for February 22, 2021.
In January, the lawsuit against the California-based company filed by Tetragon Financial Group, which in 2019 led a $200 million Series C funding round.
Ripple has been in litigation with a group of investors for a second year, accusing the XRP issuer of violating securities laws.
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