Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty released statements addressing misinformation surrounding a recently filed class-action lawsuit about XRP.
“As many have noticed, and some have already noted, there are a number of misleading and some factual headlines describing the decision made yesterday by a judge in California in a class-action lawsuit over XRP,” Garlinghouse said. said.
He noted that the decision was a significant victory for Ripple, as all class action claims in the case were dismissed. The decision did not eliminate or change the fact that XRP is not a security according to the New York Court decision. The California ruling rejected all claims that Ripple violated federal securities law by selling XRP.
Regarding the sole state law claim scheduled for trial, Garlinghouse clarified that the sole plaintiff did not purchase XRP directly from Ripple and could not confirm whether he had even heard of the disclosure before making the transaction. The plaintiff only had a few hundred XRP. Garlinghouse called this case a clear example of trolls failing by trying to take advantage of the U.S. legal system and twist testimony for class-action settlements worth hundreds of millions of dollars.
“With respect to the ‘misleading statements,’ I stand by what I said and look forward to shedding light on this issue during the hearing,” Garlinghouse concluded.
Stuart Alderoty also commented on the issue, reiterating that the California judge rejected all claims that Ripple violated federal securities law. He confirmed that New York's ruling that XRP is not a security has not been overturned.
Alderoty said a state law claim based on a 2017 statement will go to trial. The plaintiff, who did not buy directly from Ripple and was unable to say whether he even heard the statement before trading, allegedly lost several hundred dollars.
*This is not investment advice.
