Conclusion of the Ripple Lawsuit
The Ripple lawsuit has finally come to an end. Ripple, the company behind XRP cryptocurrency, was sued by David Oconer in April for his investments in XRP tokens. The lawsuit alleged that Ripple violated U.S Securities Act of 1933 by not registering its token as a security with the US Securities and Exchange Commission. The court has dismissed the case, noting that the plaintiff did not have standing to sue on behalf of other people who may have been harmed by Ripple’s actions nor did it have any connection to California where the complainant is from and where the company is located. This means that Ripple is free from any potential liability arising from this lawsuit and can continue with its business as usual.
The Ripple lawsuit ended in October of 2018. The class-action lawsuit was filed on behalf of investors who believed that Ripple Labs violated federal securities laws by selling XRP tokens, which are not securities, as though they were. Ultimately the plaintiff’s claims were rejected because the Court found that there was no evidence of fraud or misrepresentation on the part of Ripple Labs or its founders. The Court dismissed with prejudice all claims against ripple labs and its founders and in favor in the plaintiffs for their lack of standing in this case.The ripple lawsuit has concluded with the District Court of California dismissing the case. The dismissal came about following reports that stated that Ripple Labs had agreed to settle all claims before it goes to trial.
Ryan Coffey and David Oconer had filed their suit against Ripple Labs alleging that XRP was a security, not a currency. XRP is not classified as a security according to the SEC, so these claims are invalid. The Ripple Lawsuit was a landmark case in cryptocurrency history. It generated a lot of misconceptions and misinformation in the traditional media. The settlement, which was filed on Thursday, is the final step in the lawsuit that started back in 2017. In conclusion, Ripple Labs LTD has been vindicated with this settlement and it will allow them to focus on building out their products and developments for their customers. The Ripple lawsuit has been a major event in the cryptocurrency world. The lawsuit centered around accusations by Ryan Coffey, a self-proclaimed XRP investor, that Ripple had violated federal securities laws. In the end, the SEC declined to take action against ripple for not registering their tokens as securities. They closed the investigation.