Holding XRP Turns Riskier as Ripple Fails to Escape Class-Action Lawsuit

A technical correction lately drove the XRP price lower by circa 36 percent. And there is a strong likelihood that it will fall further.That is according to Ripple Labs, a San Francisco-based blockchain payment firm, that holds about 60 percent of total XRP supply. The company uttered the bearish scenario about the cryptocurrency as it failed to convince a judge into rejecting a class-action lawsuit against them.U.S. District Judge Phyllis Hamilton said in a court ruling Wednesday that plaintiffs, who earlier accused Ripple of duping them into the sale of XRP as “unregistered securities,” could proceed with their suit against the company. The decision followed Ripple’s request to reject the case because investors filed it after the passing of a so-called legal deadline.The judge in the XRP securities class action has granted in part & denied in part Ripple’s motion to dismiss the case.There’s a lot going on here, but overall it’s a victory for the plaintiffs. The securities claims survive. XRP stays in the crosshairs.https://t.co/81qSNDznaA— Jake Chervinsky (@jchervinsky) February 26, 2020The company also asserted that continuing the lawsuit could potentially harm XRP, whose market logged $500 billion worth of trades since 2017.Judge Phyllis disagreed with Ripple’s contentions, saying that the plaintiffs could file the suit under the Federal law. At the same time, she agreed to dismiss some claims classified under California state law, granting investors 28 days to amend and refile them in the court.“Based on the plaintiff’s complaint and the judicially noticeable facts proffered, the court cannot conclude that defendants’ first bona fide public offer to sell XRP occurred before August 5, 2016,” she said.XRP in the CrosshairsJudge Phyllis’s rulings came amidst concerns that the US Securities and Exchange Commission could classify XRP as security and stop its trading across all the major US exchanges. The regulator has not taken any stance.On the other hand, investors posing as plaintiffs said that they suffered losses because of Ripple’s false promotional offers. The company is denying the accusations ever since the case went to floors two years ago.

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