Ripple Emerges Victorious in Class Action Lawsuit Yet Await XRP Security Verdict

The ongoing battle between Ripple and the SEC has intensified! In a recent development, the U.S. District Court for the Northern District of California has dismissed significant claims in a class action lawsuit against Ripple, marking a procedural win for the company.
Judge Phyllis Hamilton granted Ripple’s motion for summary judgment on federal class claims related to unregistered securities and state law violations, effectively wiping out most of the class action allegations against Ripple. Stuart Alderoty, Ripple’s Chief Legal Officer, expressed satisfaction with the dismissal.
However, the court did not address the crucial question of whether XRP should be classified as a security. This pivotal issue will be left to a jury to decide, based on the criteria of the Howey Test.
In a separate civil securities lawsuit against Ripple CEO Brad Garlinghouse, a California judge has ruled that Garlinghouse will face trial over allegations of issuing misleading statements in 2017 regarding XRP sales.
While dismissing four other claims, the U.S. District Court for the Northern District of California has decided that the trial will focus on whether Garlinghouse’s actions had an impact on investors’ decisions, diverging from Ripple’s partial success in New York.
This trial aims to bring clarity on whether XRP should be considered a security under legal definitions.
The recent rulings showcase conflicting decisions, with Judge Hamilton’s ruling differing from Judge Analisa Torres’ decision in the Southern District of New York, where XRP was deemed not to be a security when sold to retail investors. Legal expert Fred Rispoli has highlighted the potential for a settlement in the California case due to the low damages involved and the risk of an unfavorable jury verdict for Ripple.
Both parties have been instructed to review 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 will then make a final decision on these motions.
In terms of XRP’s price impact, the cryptocurrency is currently approaching the local support level of $0.4922, with a potential drop to around $0.4850 if this level is breached. XRP is trading sideways between $0.4850 and $0.50 on a larger time frame, showing no clear dominance by buyers or sellers. The weekly chart indicates XRP is within a wide channel of $0.4309 to $0.5714, with low volume signaling minimal chances of significant volatility until the month’s end.
XRP is currently trading at $0.4947.
While Ripple has achieved a partial victory in dismissing several claims, the status of XRP remains uncertain and will be determined by the jury. Many anticipate that the outcome will have a significant impact on XRP’s price. Stay tuned for more updates!
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Ethereum Freed from SEC, Can Ripple Be Next? Judgement Awaited
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Ripple (XRP)