Ripple (XRP) hit with class action
Ripple Lawsuit: Something interesting happened in the crypto sector, this time centered around Ripple (XRP). A law firm has announced that it has filed a class action against Ripple Labs. The trial, filed yesterday, targets the following parties: Ripple, XRP II, and CEO Brad Garlinghouse.
The complaint essentially states that the sale of Ripple Tokens (XRP) by the company violates United States securities laws. The Taylor-Copeland Act classifies the class action. The complaint concerns Ryan Coffey, an individual who bought 650 XRP on January 5, 2018, and then sold it on the 18th for USDT. Coffey traded for USD, eventually suffering a loss of about $ 551.89. It's about 32%.
According to the lawsuit, Coffey (the plaintiff) did not expect to lose money on his investment. Interestingly, considering the loss of money goes hand in hand with the crypto sector, and most people take their losses, learn from them, and they do not complain. That said, Coffey apparently did not think that losing money would be a result, because of Ripple Lab's promotional practices. For example, publish or retweet articles that are favorable to Ripple (XRP).
Apparently, the three accused violated not only the California Corporations Code but also the Securities Act. The plaintiffs are asking the courts to declare the sale of Ripple (XRP) as a sale of unregistered securities. It will be interesting to see how this happens, since a spokesman for Ripple said today that the company is not a guarantee under US law.