The class action lawsuit filed in the U.S. District Court for the Northern District of California alleges that Ripple violated federal and California securities laws by selling XRP coins without registering with regulators.. Individuals and businesses who purchased XRP between July 3, 2017 and June 30, 2023 are seeking a refund of the funds spent on XRP with interest.. Those who sold XRP at a loss demanded that the company compensate them.
Plaintiffs have until April 5, 2024 to opt out of the class action.. However, individuals and institutions will retain the ability to file independent lawsuits against Ripple.. The company itself does not agree with the accusations: XRP is not a security and, therefore, does not need to be registered.
The lawsuit comes as Ripple achieved a partial victory in a lawsuit brought by the US Securities and Exchange Commission (SEC) in late 2020. In the summer of 2023, Judge Analisa Torres ruled that XRP was not a security when sold to retail investors.
Let us recall that the court recently ordered Ripple to provide financial statements for 2022-2023 and information on contracts related to the sale of XRP to individual investors. This is necessary to select suitable sanctions against Ripple.