On April 26, a class-action lawsuit against Ripple Labs for allegedly selling XRP as an unregistered security will be heard in a federal court in California.
The plaintiffs, represented by Bradley Sostak, aim to demonstrate that all individuals who bought and sold XRP at a loss, or still hold it, were negatively impacted by Ripple’s illegal actions.
The attorney argues that XRP is a security, and that Ripple violated federal securities laws by selling it to investors without proper registration with the US Securities and Exchange Commission (SEC).
Experts in the crypto community believe that the court’s ruling could put an end to the long-standing legal dispute between Ripple and the SEC, and may have significant repercussions for the entire crypto industry.
This is especially true if the plaintiffs can successfully prove their allegations in court and have XRP certified as a security.
In a previous statement, Ripple Labs’ CEO Brad Garlinghouse hinted that the company might relocate to a more crypto-friendly country if it fails to win the ongoing legal battle with the SEC.