Ripple CEO Brad Garlinghouse has responded to the misconceptions and misleading headlines surrounding a recent California court ruling in a class action lawsuit involving XRP. Garlinghouse stated that certain crypto media outlets have been spreading inaccurate and factually incorrect information about the court’s decision.
To clarify, Garlinghouse described the court’s ruling as a significant victory for both XRP and Ripple. He emphasized that Judge Phyllis Hamilton dismissed all claims made in the class action lawsuit, affirming that XRP itself is not a security. This determination was previously made by a New York District Court last year. Additionally, Garlinghouse made it clear that Judge Hamilton dismissed all allegations that Ripple had violated securities laws through its offers and sales of XRP.
In regards to the state law claim that is set for trial, Garlinghouse noted that the sole plaintiff in the case did not directly purchase XRP from Ripple. Furthermore, he could not confirm whether the plaintiff had heard the alleged “misleading statement” that he was accused of making in 2017 before acquiring a small amount of XRP. Garlinghouse suggested that this situation exemplifies individuals trying to exploit the U.S. legal system by distorting facts in order to pursue large sums of money through securities class actions. Nevertheless, he stood by his alleged statement and stated that he will address it in the upcoming trial.
In addition to Garlinghouse’s comments, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, clarified that Judge Analisa Torres’ ruling confirming XRP’s non-security status remains unchanged. Alderoty confirmed that Judge Hamilton dismissed all allegations of securities law violations by Ripple, leaving only one state law claim related to Garlinghouse’s 2017 statement, which will be decided by a jury soon.
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