XRP lawyer says Ripple victory in SEC lawsuit could void investor class action

John Deaton, crypto attorney and legal representative for XRP holders in the lawsuit between Ripple and the US Securities and Exchange Commission (SEC), has revealed that a recent class action lawsuit against the company could possibly be undone if it wins the case. Will be done. ,

recently doDeaton said the class action was the least of Ripple’s concerns.

Ripple wins SEC case to quash class action

The class action in question was granted certification on June 30 by Judge Phyllis Hamilton of the US District Court for the Northern District of California. class action lawsuit is accused Ripple Labs, its CEO Brad Garlinghouse and its subsidiary XRP II are engaged in a plan to raise hundreds of millions of dollars through the sale of XRP to retail investors.

The plaintiffs accused the defendants of violating the registration provisions of state and federal securities laws through the sale of crypto assets tagged as unregistered securities.

While Garlinghouse and Ripple Labs challenged the certification, Judge Hamilton ruled that the class action met four requirements to be certified. Ripple’s argument was based on the plaintiffs’ failure to show that they would protect the interests of the class, as many of the proposed members disagreed with the basis of the lawsuit.

According to Ripple, one such member is Bradley Sostack, who made purchases in the secondary market, making his case subject to a unique defense.

In response, Hamilton revealed that the plaintiffs had made it clear that the individual issues would remain secondary to the general class issues, and that the standard opt-out process would resolve any disagreements on the basis of the lawsuit.

Still, Deaton said that the plaintiffs’ attorneys should expect the SEC to lose their lawsuit against Ripple, as the agency would set up a fund to pay XRP holders if the case were to be overturned, rendering the class action invalid. .

Class suit concerns only US investors

On the other hand, if Ripple wins, Deaton believes Hamilton will follow Judge Annalisa Torres’ ruling that XRP is not a security. Either way, the class suit will be invalidated once the SEC-Ripple case comes to an end.

In response to an inquiry about offshore XRP holders, the crypto lawyer noted Regulators in the UK, Japan, Singapore and the United Arab Emirates (UAE) do not recognize XRP as a security. Therefore, the lawsuit only applies to US investors.