California Judge Advances Civil Securities Lawsuit Against Ripple, Sets Stage For Trial
Portfolio Pulse from Murtuza Merchant
A California judge has advanced a civil securities lawsuit against Ripple Labs, setting the stage for a trial. The court denied part of Ripple's motion for summary judgment, focusing on allegations that Ripple's CEO violated state securities laws in 2017. The trial will examine whether Ripple CEO Brad Garlinghouse made misleading statements about the sale of securities during a 2017 interview. Ripple's Chief Legal Officer expressed satisfaction with the dismissal of all class action claims, but the individual state law claim will proceed to trial.
June 21, 2024 | 2:49 pm
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The civil securities lawsuit against Ripple Labs will proceed to trial, focusing on allegations against CEO Brad Garlinghouse. The court dismissed class action claims but retained an individual state law claim. This development could lead to increased volatility in XRP prices.
The advancement of the lawsuit to trial introduces legal uncertainty for Ripple Labs, which could negatively impact investor sentiment and lead to short-term price volatility for XRP. The dismissal of class action claims is a positive, but the remaining individual state law claim keeps legal risks alive.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100