Ripple Lawsuit: Something interesting has occurred within the crypto sector, this time centering around Ripple (XRP). A law firm has announced that it filed a class action suit against Ripple Labs. The suit, filed yesterday, targets the following parties: Ripple, XRP II, and CEO Brad Garlinghouse.
The suit essentially states that the company’s sale of Ripple (XRP) tokens violates United States securities laws. Taylor-Copeland law filed the class action suit. The complaint centers around Ryan Coffey, an individual who bought 650 XRP on January 5th, 2018, then sold it on the 18th for USDT. Coffey exchanged for USD, ultimately suffering a loss of roughly $551.89. That’s around 32%.
According to the lawsuit, Coffey (the plaintiff) was not expecting to lose money on his investment. Interesting, considering losing money goes hand in hand with the crypto sector, and most people just take their losses, learn from them, and they don’t file a lawsuit. That said, Coffey apparently didn’t think losing money would be an outcome, due to Ripple Lab’s promotional practices. For instance, posting or retweeting articles that are favorable towards Ripple (XRP).
Allegedly, the three defendants violated not only the California Corporations Code but also the Securities Act. The plaintiffs are asking that the courts declare the sale of Ripple (XRP) a sale of unregistered securities. It will be interesting to see how this turns out, considering a spokesman for Ripple today said that the company is not a security under United States law.
What are People Saying about the Ripple Lawsuit?
Even though the lawyer tweeted yesterday about a recently filed suit, Ripple has yet to be served.
Taylor-Copeland Law files suit against Ripple on behalf of XRP investors. Read the full complaint here: https://t.co/feY5HWNaYx
— James (@TCryptoLaw) May 4, 2018
The tweet received mixed responses, though the majority appeared to lean towards this being an unnecessary lawsuit. Some even claimed the plaintiff was just grumpy that he or she lost money. What do you think?
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Meanwhile, Twiter user WhalePanda appeared to be on the side of the lawsuit, writing that it’s not about the money lost, but about “setting a precedent”.
What people don’t seem to realize is that’s not about the amount but it’s about setting a precedent. https://t.co/ZbIdC2A4O1
— WhalePanda (@WhalePanda) May 4, 2018
In the meantime, Ripple (XRP) is currently selling for $0.900312. This puts Ripple (XRP) up 2.22% in the past twenty-four hours. Ripple (XRP) is currently ranked as the third largest virtual currency, with a market cap of 35.27 billion.
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