Responding to a recent post regarding a cryptocurrency securities legal case brought against Ripple Labs Inc. and the creation of an investor group, attorney Fred Rispoli commented that not everything can be gold for Ripple.
The central focus of the complaint revolves around the financial losses suffered by investors in digital tokens.
Despite the company’s objections, on June 30, Judge Phyllis J. Hamilton of the United States District Court for the Northern District of California ruled that the group did indeed meet the prerequisites for certification.
The legal approach taken by Ripple Labs and the potential consequences of a judgment in this case are now under scrutiny, particularly if the outcome clashes with the regulatory position in New York. Brad Garlinghouse, CEO of Information, challenged the certification.
However, their efforts to overcome the challenges were in vain. Following the court’s decision, a group of certified investors will have the opportunity to file a lawsuit against Ripple Labs as a collective.
The lawyer mentioned that he had not personally reviewed the official court order. Conversely, Rispoli argues that obtaining class action certification can often prove detrimental to a business.
He references the ongoing legal battle between Ripple Labs and the SEC and suggests that a similar legal tactic could be used in this case. Rispoli further explains that the next phase of the litigation process would involve summary judgment, indicating that it may progress at a slower pace compared to the current SEC investigation.
Because the next step is summary judgment, the SEC’s lawsuit is “delayed.” Moreover, it is imperative to acquire more information regarding the consequences of a decision that XRP calls title in the Oakland case but not in New York.
He expresses reservations about the potential outcome in which XRP is not classified as a security in New York but is the subject of the ongoing lawsuit in Oakland. Rispoli is interested in the potential implications for the legal status of Ripple Labs and the prevailing uncertainty regarding the regulation of XRP.