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The ongoing legal disputes that Ripple is having with the United States Securities and Exchange Commission have been at the forefront of the cryptocurrency industry for quite a while.
The case is currently in its last stage, but it’s not the only one that the company has to face.
Ripple’s Legal Woes in California
In addition to the case against the SEC, Brad Garlinghouse, CEO of Ripple, is also involved in a civil lawsuit regarding a securities claim based on statements he made earlier in 2017.
The statements in question are:
“I’m long XRP, I’m very, very long XRP as a percentage of my personal balance sheet. . . . . [I am] not long on some of the other [digital] assets, because it is not clear to me what’s the real utility, what problem are they really solving . . . if you’re solving a real problem if it’s a scaled problem, then I think you have a huge opportunity to continue to grow that. We have been really fortunate obviously, I remain very, very, very long XRP, there is an expression in the industry HODL, instead of hold, it’s HODL . . . I’m on the HODL side.”
The judge in the case dismissed allegations that suggest Ripple violated federal securities law, with the head of the company’s legal efforts noting:
The CA judge dismissed all allegations suggesting that Ripple violated federal securities law. The NY ruling that XRP is not a security stands undisturbed.
One state law claim, based on a 2017 statement, is going to trial. The plaintiff – who didn’t buy directly from Ripple and can’t say if he even heard the statement before he traded – allegedly lost a couple hundred $. We look forward to that cross examination.
Big Win for Ripple?
In essence, only a part of the claims made in advance were allowed to continue to trial, with CEO Brad Garlinghouse saying:
To be absolutely clear, this is a big win – all class action claims in the suit were DISMISEED…
He also said that he stands by what he said and is looking forward to “shedding light on that during the trial.”
As many have noticed – and some have already pointed out – there have been numerous misleading and some factually inaccurate headlines describing the decision made by a California judge yesterday in the class action lawsuit about XRP. (I’m happy to see some correcting them – I…
— Brad Garlinghouse (@bgarlinghouse) June 21, 2024
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