Class action filed against MoneyGram over Ripple partnership claims

Lawyers from Rosen Law Firm filed a class action against the MoneyGram money-transfer service over statements regarding its partnership with Ripple and the XRP token. This is stated on the firm’s сайте фирмы.

The filing was made on March 1 on behalf of a group of MoneyGram investors who bought shares between June 17, 2019 and February 22, 2021. According to the lawyers, the company did not warn about the possible classification of the XRP token as a security and the potential loss of fee income.

“As a result, the defendant’s public statements were false or misleading in all respects. The plaintiffs allege they suffered losses when material information reached the market,” the lawyers said.

Since the summer of 2019, MoneyGram used the On-Demand Liquidity system to process cross-border payments. For interacting with it, the service earned commissions in XRP.

At the end of 2020 the SEC accused Ripple of selling unregistered securities in the form of $1.3 billion worth of tokens. Later, the regulator clarified the responsibility of the CEO Brad Garlinghouse and co-founder Chris Larsen.

In the wake of the SEC’s claims, major platforms stopped supporting the XRP token. Among them Coinbase and OKCoin, Galaxy Digital, Bitstamp and others. Grayscale Investments announced the liquidation of an XRP-based trust, and 21Shares removed the Ripple token from its listed exchange-traded products.

Since the filing, MoneyGram has taken a wait-and-see stance. On February 23, 2021, the service stopped using an XRP-based product.

Earlier, a Coinbase user filed suit against the platform for selling XRP tokens.

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