John Deaton, crypto attorney and legal representative for XRP holders in the lawsuit between Ripple and the US Securities and Exchange Commission (SEC), has revealed that a recent class action lawsuit filed against the company would likely be overturned if the company win the case. .
In a recent cheepDeaton said the class action lawsuit was the least of Ripple’s concerns.
Ripple’s victory in the SEC’s case to quash the class action lawsuit
The class action lawsuit in question was certified by Judge Phyllis Hamilton of the US District Court for the Northern District of California on June 30. The class action lawsuit alleges that Ripple Labs, its CEO Brad Garlinghouse, and its subsidiary XRP II participated in a scheme to raise hundreds of millions of dollars through sales of XRP to retail investors.
The plaintiffs accused the defendants of violating the registration provisions of state and federal securities laws through the sale of the crypto asset, which has been labeled an unregistered security.
Although Garlinghouse and Ripple Labs challenged the certification, Judge Hamilton ruled that the class action lawsuit met all four requirements for certification. Ripple’s argument was based on the plaintiffs failing to demonstrate that they would protect the interests of the class, as several proposed members disagreed with the premise of the lawsuit.
One such member is Bradley Sostack, who made purchases on the secondary market, making his case subject to unique defenses, according to Ripple.
In response, Hamilton revealed that the plaintiffs had clarified that individual issues would remain secondary to common class issues, and that the standard opt-out procedure would settle any disagreements on the claim’s premise.
However, Deaton said that the plaintiffs’ lawyers should expect the SEC to lose in its lawsuit against Ripple, as the agency would set up a fund to pay XRP holders if the opposite occurs, thus invalidating the class action lawsuit.
Class Action Only Affects US Investors
On the other hand, if Ripple wins, Deaton believes Hamilton would follow Judge Analisa Torres’ decision that XRP is not a security. Either way, the class action lawsuit will be invalidated when the SEC-Ripple case ends.
In response to a query about XRP holders abroad, crypto attorney noted that regulators in the UK, Japan, Singapore and the United Arab Emirates (UAE) do not recognize XRP as a security. Therefore, the lawsuit applies only to US investors.
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This post XRP Lawyer Says Ripple’s Victory In SEC Lawsuit Could Overturn Investor Class Action
was published first on https://cryptopotato.com/xrp-lawyer-says-ripples-victory-in-sec-lawsuit-could-render-investors-class-action-void/