In response to a recent news item on the certification of an investor class in a cryptocurrency securities case against Ripple Labs Inc., attorney Fred Rispoli has issued a statement. Trading losses involving digital tokens are at the Centre of the complaint.
Despite the company’s opposition to the certification, Judge Phyllis J. Hamilton of the US District Court for the Northern District of California acknowledged on June 30 that the category met the requirements.
This development raises concerns about Ripple Labs’ legal strategy and the possible ramifications of a decision in this lawsuit, particularly if it differs from the regulatory position in New York. The certification was disputed by the CEO Brad Garlinghouse.
But ultimately, they were unable to solve their issue. Since the court decided to award certification, Ripple Labs now has to contend with a class-wide collective legal action by authorized investors.
The attorney said that he did not have access to the specific court order. However, Rispoli indicates that a business will generally lose out if a category motion is certified. He knows that Ripple Labs has been involved in a legal struggle with the Securities and Exchange Commission (SEC), and he suggests that the same legal strategy may be appropriate in this situation. According to Rispoli, the case will likely proceed more slowly than the ongoing SEC case because the next stage of the complaint will be an abstract judgement.
Also read: Ripple against SEC: Crypto Lawyer Provides Perspective on Timeline for Abstract Judgement.
He raises concerns about the situation where XRP is ruled to be not a security in New York but is considered a security in the on-going Oakland case. Rispoli is interested in the ramifications and potential effects this may have on Ripple Labs’ legal standing and the regulatory uncertainty surrounding XRP in general.