In response to a recent written article regarding a legal matter related to cryptocurrency securities filed against Ripple Labs Inc. And creating a pool of investors, attorney Fred Rispoli made the comment that all cannot be gold for Ripple.
The main focus of the complaint is around the financial losses incurred by investors in digital tokens.
Despite the company’s objections, on June 30, Judge Phyllis J. Hamilton of the US District Court for the Northern District of California issued a decision stating that the group had indeed met the basic requirements for certification.
Ripple Labs’ legal approach and the potential consequences of ruling in this case are now the subject of intense scrutiny, especially if the outcome is at odds with New York’s regulatory stance. Chief Information Officer Brad Garlinghouse disputed the testimony.
However, their efforts to overcome the challenges were in vain. As a result of the court’s decision, a group of accredited investors will have the ability to file a lawsuit against Ripple Labs as a group.
The lawyer stated that he had not personally examined the official court order. On the contrary, Rispoli argues that obtaining certification for a class action can often be detrimental to the company.
He points to the ongoing legal battle between Ripple Labs and the SEC and suggests that a similar legal tactic could be used in this case. Rispoli further explains that the next stage in the litigation process will involve summary judgment, which indicates that it may proceed at a slower pace compared to the current SEC investigation.
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Because the next step is summary judgment, the lawsuit filed by the SEC is “delayed.” Additionally, more information is necessary regarding the consequences of a ruling deeming XRP eligible as collateral in the case of Oakland but not New York.
He has expressed reservations about the possible outcome of XRP not being classified as a security in New York but in the ongoing lawsuit in Oakland. Rispoli is concerned about the potential implications for Ripple Labs’ legal status and the uncertainty surrounding XRP regulation.