A lawsuit has been filed against Ripple, Brad Garlinghouse, and XRP II, LLC, alleging that the defendants violated federal and California securities laws.
Ripple Labs Inc., CEO Brad Garlinghouse, and its subsidiary XRP II, LLC, are facing a class-action lawsuit filed in Northern District of California.
Notably, the lawsuit alleges that the San Francisco-based company violated federal and California securities laws by offering and selling the digital asset XRP without proper registration.
The noteworthy information in the lawsuit is revealed:
The plaintiffs claim that Ripple engaged in the unauthorized sale of XRP, disregarding the registration requirements stipulated by federal and California securities laws.
In addition, the lawsuit is represented by two separate groups: the Federal Securities Complaint Group and the California Securities Complaint Group, which include individuals and organizations that purchased XRP between July 3, 2017, and June 30, 2023.
On the other hand, Ripple and its co-defendants deny these allegations, asserting that XRP is not a security and, therefore, does not require any registration procedures.
The lawsuit comes at a time when Ripple achieved a partial victory in a legal case pursued by the U.S. Securities and Exchange Commission (SEC), as the judge declared that XRP is not a security.
Currently, Ripple has adopted a defensive strategy revolving around the argument that XRP is used for global transactions and should not be classified as a security.
The deadline to withdraw from the lawsuit is April 5, allowing individuals and organizations to continue collecting evidence against Ripple for compensation.
