The Ripple community is unable to explain the motivation behind a class action lawsuit that Florida man Tyler Toomey filed against Ripple Labs and Ripple CEO Brad Garlinghouse for a loss of $ 48.56.
In November 2020, Toomey bought 135 XRP tokens at $ 0.724 each for a total of $ 97.80. Following news of another lawsuit against Ripple this December, Toomey sold its investment for $ 49.24 and suffered a loss of nearly 50%. He has now launched a class action lawsuit that costs eight times more filing fees than the loss he allegedly suffered.
According to the Florida Middle District website where the lawsuit was filed, the cost of filing a civil lawsuit is $ 402.
In addition to the general craziness of the case, the amount requested by Toomey is $ 5,000,001,000, and the magistrate running the case shares his unusual surname – Judge Joel B. Toomey.
The filing states that the class action lawsuit is on behalf of Toomey (the plaintiff, not the judge) and “anyone else similarly tried against the defendant Ripple Labs.” Hence, it is possible that his motivation is merely to allow other investors to take similar action.
Don’t forget that the new #xrp lawsuit is a class action so others are expected to join the lawsuit.
I think the $ 50 guy is just a clickbait.
– The judge hearing the case appears to be associated with the plaintiff
– $ 5,000,001,000 is enough: //t.co/uoLujqO43s
– Howard Moon (@XrpHoward) January 27, 2021
Toomey is also seeking an “injunction” based on the amount of XRP held by the defendants, which the filing claims “can continue to make money while creating significant risk for investors.”
The Ripple community doesn’t seem to know what to do with the case as some have taken offense while others think it’s a joke. A Twitter user offered Toomey $ 200 worth of XRP in order to drop the lawsuit.
Jess Hynes, a New Jersey attorney, suggested that the law was to blame for making such malarkia possible.
“This stuff is going to keep happening, and you can blame Congress and the SEC for it. @RepMaxineWaters refused to do their job in the last session. Let’s hope she does it that way. “
Ripple is currently trading at $ 0.25, down 4% on the day, suggesting few investors are taking this lawsuit to heart.