- Ripple Labs faces critical class certification hearing in ongoing lawsuit.
- XRP holders around the world potentially impacted by lawsuit’s outcome.
Ripple Labs’ Class Action Lawsuit Gains Momentum
The class action lawsuit against Ripple Labs, alleging the sale of XRP as an unregistered security, is intensifying as the class certification hearing takes place today at 4:30 p.m. ET. If the judge denies the class certification order, the case, which has been in progress since 2018, could end earlier than anticipated.
Attending the Zoom Hearing
XRP community attorney John E. Deaton announced in a Twitter thread that he would be attending the Zoom hearing. In contrast to the LBRY vs. U.S. Securities and Exchange Commission (SEC) case, the judge presiding over the Ripple Labs case will not permit amicus attorneys to attend the oral hearing.
#XRPHolders: Plz know that I intend to be on Zoom, but, unlike the @LBRYcom hearing, this Judge does not allow Amicus counsel to participate at oral argument (even if the amicus brief is allowed). This is a long standing rule of the Court so it has nothing to do w/this case. https://t.co/fLl0lOsH4W
— John E Deaton (@JohnEDeaton1) April 26, 2023
Deaton, the founder of Crypto Law and attorney for XRP holders, filed an amicus brief in the case in February. The hearing is open to the public, with online access available for 500 members of the general public.
What’s at Stake for Ripple Today
The focus of the hearing is on oral arguments concerning the certification issue for the group of XRP owners suing Ripple. Plaintiff Bradley Sostak, who owned XRP for only two weeks, requests to be the lead plaintiff in the class action, claiming that XRP is a security. Sostak proposes a class consisting of all XRP owners who either bought and now hold XRP or sold XRP at a loss.
Global Impact on XRP Holders
The proposed class action would impact XRP holders worldwide, including the 75,890 XRP holders who disagree with the plaintiffs in the Zakinov case and side with Ripple in the case against the SEC. The proposed class action covers not only direct Ripple sales but also all XRP sales, including secondary sales and international sales in countries where XRP is already classified as a non-security.
In the Zakinov vs. Ripple case, the judge just agreed to extend the trial by about a month with trial starting on April 15 2024. The original lawsuit was filed in May 2018. That would be 6 years until trial would start at all. But the laws and rules are clear since 1933! It will… pic.twitter.com/7ud7VwMIEx
— Mr. Huber🔥🦅🔥 (@Leerzeit) March 24, 2023
John E. Deaton’s Amicus Brief
In his amicus brief, John E. Deaton urged the court not to certify the class due to these conflicts and the limited number of XRP holders claiming XRP is an unregistered security. Although the litigation has been pending for five years, the court’s schedule suggests that the case could continue for quite some time if the class is certified.
The trial might not commence until April 15, 2024, a full six years before the trial even begins. As of press time, the XRP price was $0.4689, up 2% in the last 24 hours.