- Ripple Has More Than One Pending Class Action Lawsuit Against Its Executives and Management
- United States Judge Says The Class Action Lawsuit Against Ripple Will Proceed As a Consolidated Suit
Ripple News Today – Ripple is the most controversial blockchain firm in the industry and the XRP token is one of the most controversial tokens among the top 20 on CoinMarketCap. For several reasons, the firm has taken a lot of heat from members of the cryptocurrency community. Some individuals and groups have gone as far as filing class-action lawsuits against the company and its key executives. Members of the XRP community hoped that these suits would be pushed aside or judged in favor of the blockchain firm. However, a United States Judge recently announced that one of the class action lawsuits will proceed as a consolidation suit.
Ripple News Today – Lawsuit Against Ripple Will Proceed As a Consolidation Suit
The Californian judge said that the two different class-action lawsuits against Ripple will proceed to trial as consolidation suits. The judge has requested that the two class-action lawsuits from Bradley Sostack and Bitcoin Manipulation Abatement LLC, should be merged into a single lawsuit. This will speed up the trial since both plaintiffs are accusing Ripple of the same thing so there is no point handling both cases separately. This will also save taxpayers money since they will cut out duplicative processes.
Judge Phyllis J. Hamilton, the United States Judge who ordered the consolidation is currently the judge in the District Court for the Northern District of California. According to his statement, both lawsuits are “materially identical”. In his words;
“Relating the BMA action to this action would avoid the duplication of labor and conflicting results that might otherwise arise. A core contention at issue in this litigation —whether XRP qualifies as a security under federal and California state law — is novel and nuanced. While the court is less concerned about potentially conflicting results, its determination of that core contention, in addition to that of the other questions presented in this action, will require significant labor.”
The news may not have sealed the faith of XRP and Ripple. However, the news about the consolidation was still a major blow to Ripple since they were hoping that the two cases would be thrown out before the case starts. This is because this consolidation proves that the court will be moving forward with the case against Ripple. The litigation by both parties, which started about 2 years ago is still ongoing. Even if the SEC hasn’t said anything about XRP’s security status, proceeding to trial still gives XRP a bad wrap. It is bad for the company’s reputation and the price of the token.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.