The war between Ripple and the SEC just got hotter! In a recent development, the U.S. District Court for the Northern District of California dismissed several major claims in a class action lawsuit against Ripple, providing a procedural victory for the company.
But wait… what does that mean?
Judge Phyllis Hamilton granted Ripple’s motion for summary judgment on federal class claims for unregistered securities and state law securities claims, effectively removing most class action allegations against Ripple. Stuart Alderoty, Ripple’s Chief Legal Officer, expressed satisfaction with this outcome.
Despite these dismissals, the court did not resolve the critical question of whether XRP is a security. This pivotal issue will be decided by a jury, which will evaluate if XRP meets the criteria of the Howey Test. The uncertainty surrounding XRP’s status continues to loom large over the company and its investors.
In a separate civil securities lawsuit against Ripple CEO Brad Garlinghouse, a California judge ruled that Garlinghouse must face trial over allegations of making misleading statements about XRP sales in 2017. While the court dismissed four other claims, it determined that the trial would center on whether Garlinghouse’s actions influenced investors’ decisions.
This ruling differs from Ripple’s partial victory in New York.
The trial aims to clarify if XRP should be legally classified as a security. Judge Hamilton’s decision contrasts sharply with a ruling by Judge Analisa Torres in the Southern District of New York, who found that XRP was not a security when sold to retail investors, as it did not fulfill all elements of the Howey Test.
Legal expert Fred Rispoli highlighted the potential for settlement in the California case due to low damages and the risk of a negative jury verdict for Ripple.
Upcoming Deadlines and Motions
Both parties have been ordered to reconsider their motions to seal parts of their briefs and have until July 8, 2024, to file a revised motion to seal specific exhibits. The court’s final decision on these motions will follow shortly thereafter.
Currently, XRP is nearing the local support level of $0.4922 despite a slight rise. If it breaks this level, it could drop to around $0.4850. On a larger time frame, XRP trades sideways between $0.4850 and $0.50, with neither buyers nor sellers showing clear dominance. On the weekly chart, XRP remains within a wide channel between $0.4309 and $0.5714, with low volume suggesting limited chances of high volatility until the end of the month. XRP is presently trading at $0.4947.
Although Ripple secured a partial victory by dismissing several claims, the ultimate status of XRP remains undecided and will be determined by a jury. Many believe that this ruling will significantly impact XRP’s price.
Stay tuned for more updates as this high-stakes legal battle continues to unfold.
Also Read: Ethereum Freed from SEC, Can Ripple Be Next? Judgement Awaited
The legal battle for XRP continues. What are your predictions for the future?
XRP, the native token of Ripple Labs, is gaining massive attention from long-term holders despite…
The crypto market has recently experienced a vast downturn, with most important projects such as…
The US markets are experiencing one of the massive pullbacks, with major stocks plunging by…
PEPE hopped its way to a $3.8 billion market cap, but its reign as a…
Ripple’s (XRP) recent rally from $2.00 to $2.20 has sparked excitement among cryptocurrency enthusiasts. This…
The crypto circus has a new ringmaster: Influencer Pepe (INPEPE). This Pepe-the-Frog-inspired token is making…
