Ripple may see another lawsuit connected to the legal classification of its crypto XRP.
It seems that Rosen Law firm is currently investigating whether Ripple Labs violated federal securities laws regarding its sale of XRP.
The New York-based firm says it “represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.”
The company also stated that it is preparing “a class action lawsuit to recover losses suffered by purchasers of Ripple’s XRP tokens.”
Ripple has already been hit with three more class-action lawsuits that have been filed in California and are all claiming that XRP is a security.
Previous lawsuits that hit Ripple and its CEO Brad Garlinghouse
Here are the three previous lawsuits:
May 3 – Law firm Taylor-Copeland filed a class action suit in San Francisco, California
June 5 – Law firm Robbins Arroyo filed a class action suit in San Mateo, California
June 27 – Law firm Robbins Arroyo filed a class action suit in San Mateo, California
Ripple pushes back all allegations
Ripple claimes that the digital asset is completely separate and independent from the company. CEO Brad Garlinghouse even offered three reasons for which XRP is not a security.
- “If Ripple, the company, shuts down tomorrow, the XRP ledger will continue to operate. It’s open-source, decentralized technology that exists independent of Ripple.”
- “People who buy XRP don’t think they’re buying shares of Ripple. There’s a company called Ripple. We are a private company. We have investors. People have bought shares of Ripple, the company. But buying XRP doesn’t give you ownership of Ripple. It doesn’t give you access to dividends or profits that may come from Ripple.”
- “XRP is solving a problem. There’s no utility in a security.”
It really seems that the more successful Ripple is becoming these days, the more people accuse the company.