Ripple faces a new class-action lawsuit over unregistered XRP sales in Florida

A new class action lawsuit has been filed against Ripple, its CEO Brad Garlinghouse, and its subsidiary XRP II, LLC.

The case filed in Florida Middle District Court on Monday alleges the defendants sold millions (or more) of XRP without registering it with federal or Florida authorities.

“On numerous occasions, the defendants have made public statements claiming that XRP is not a safety when in fact it is,” the lawsuit said. “Defendants have actively withheld the true nature of XRP from investors.”

The lawsuit is filed by Tyler Toomey, a Florida resident. Toomey claims that he owned 135 XRP in November 2020 (valued at about $ 100 at the time) and sold it in two transactions in December 2020 with a loss of about 50%.

While that’s a negligible amount, since it’s a class action lawsuit, other similarly located XRP investors in Florida Toomey could join in. “The plaintiff is trying to represent a class defined as any person or entity in the state of Florida that has purchased XRP,” the lawsuit said.

The block has asked Ripple for comments and will update this story in case we hear anything.

This is not the first time the defendants have faced a class action lawsuit. In 2018, California investor Vladi Zakinov filed a case alleging XRP was a security controlled by Ripple. At the time, another investor, Ryan Coffey, was filing a lawsuit against the defendants in California alleging that XRP was a security.

After years of regulatory uncertainty, the US Securities and Exchange Commission also sued Ripple, CEO and co-founder Chris Larsen, last month. The agency said it viewed XRP as collateral, alleging the defendants made unregistered security sales.

Ripple has claimed that XRP is not a security and has vowed to fight SEC fees. Ripple and the SEC will hold a pre-conference on February 22nd. Your joint letter describing the matter is due on February 15th.

© 2021 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or used as legal, tax, investment, financial or other advice.

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