Investors Renew Class Action Lawsuit Against Ripple

Another lawsuit has been filed against fintech company Ripple and its CEO, Brad Garlinghouse, over alleged violations of securities laws. This class action complaint continues a legal initiative started by investors back in January 2020.

In a statement submitted to the Northern District of California court, the plaintiffs request recognition of violations of federal and local laws during the company’s sales of XRP tokens.

Individuals and entities who purchased the asset between July 2017 and June 30, 2023, are seeking a refund of their expenditures with interest.

Those who sold XRP at a loss are hoping for compensation for their losses.

Claimants have until April 5, 2024, to opt out of the new class action. This does not preclude the possibility of filing separate claims against Ripple.

The complaint was updated after the company achieved a partial victory in the lawsuit with the U.S. Securities and Exchange Commission (SEC). In July 2023, Judge Analisa Torres concluded that sales and other distributions of XRP do not constitute an offer and sale of investment contracts.

However, the case concerning institutional sales of the coin is ongoing.

As part of this, the court ordered Ripple to provide the SEC with the requested financial documents.

In previous proceedings, investors achieved partial successes, such as the recognition of the validity of claims regarding the statute of limitations. However, the court did not find personal liability for Garlinghouse and the firm in promoting XRP.