Another day, another lawsuit for Ripple.
A new class action has been filed in Florida by Tyler Toomey, who says that the company violated the state’s securities laws by selling XRP tokens to residents.
This comes off the back of the SEC’s legal action against the company, which centers on the sale of 14.6 billion XRP worth $1.38 billion to fund its operations.
Toomey’s court filing alleges that Floridian investors were not provided with information regarding the offering of XRP “as would have been required had defendants complied with the law.”
The document goes on to accuse Ripple of making “affirmative representations to the investing public that XRP is not a security, when in fact it is” — and claims that Ripple’s executives have been enriched “to the tune of $600 million.”
Toomey bought 135 XRP for $97.80 in November 2020 at a price of about $0.72 per token — not far off its 52-week high. He ended up losing 50% of this investment when he sold it off. Although this amount is relatively small potatoes given how XRP has a market cap in the billions, other investors will be able to join the lawsuit if they wish.
The SEC and Ripple are set to lock horns for the first time in a pre-trial conference on Feb. 22.
On Monday, CoinMarketCap reported on remarks from Arca’s chief legal officer Phil Liu, who has claimed that XRP “will be a remnant of history by the end of 2021.”
But Ripple has said that it is determined to fight the SEC lawsuit — describing the commission’s allegations as “unlawful” earlier in January. On Twitter, the company’s CEO Brad Garlinghouse said:
“We’ve moved from lack of regulatory clarity to regulatory chaos in the U.S. This is why regulation by enforcement is such bad public policy.”
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