In a significant development in the ongoing In re Ripple Labs Inc Litigation, CEO Brad Garlinghouse, along with Ripple Labs and XRP II LLC, have requested the court to issue a final judgment on the plaintiff class action claims. Concurrently, they are asking for a stay on individual state law claims until the resolution of the broader case. This move comes as Judge Phyllis Hamilton emphasizes the need for both parties to explore alternative resolutions in light of recent proceedings.
Judge’s Directive – Reconsider Alternative Resolutions
In the latest court filing, Judge Hamilton underscored the importance of collaboration between Ripple and the plaintiffs. While affirming the parties’ joint motion to seek final judgment and a stay, the judge also proposed an intriguing alternative: filing a voluntary dismissal without prejudice concerning the remaining individual claim. This claim can be refiled following the outcome of the appeal regarding class claims of securities law violations tied to Ripple and its executives.
“If the parties are amenable to this alternative resolution, the court requests that they file an amended proposed order,” the judge stated. “Should they not be in agreement, a notice to that effect must be submitted by November 4, 2024.” This ultimatum sets the stage for a crucial decision that could impact the trajectory of the lawsuit significantly.
Joint Motion Filed in XRP Class Action
The joint motion from lead plaintiff Bradley Sostack and Ripple’s team aims for a decisive resolution regarding the securities law violations that have loomed over XRP. They are pushing for a final judgment on class action claims while also seeking to pause proceedings related to state law violations until the class claims are addressed. However, previous attempts to reach a settlement have faltered, leaving individual plaintiffs ready to appeal the court’s recent summary judgment on class claims, which affects all XRP purchases over a six-year span. In contrast, the individual claim pertains to a single purchase made in January 2018.
Looking ahead, a pretrial conference is slated for December 19, with jury selection and trial expected to commence on January 21. The court recently ruled favorably on four motions related to the Ripple lawsuit under the Daubert standard, marking a significant victory for the plaintiffs.
Ripple’s SEC Case Also in Focus
Simultaneously, the Ripple versus SEC case is set to advance to the U.S. Second Circuit Court of Appeals, where both parties have submitted Form C documents. The SEC has unexpectedly reinstated charges of securities law violations against Ripple executives Garlinghouse and Chris Larsen. To counter these claims, Ripple’s leadership has secured prominent attorneys to navigate the appeals process. The SEC has requested that the appeals court set January 15, 2025, as the deadline for its principal brief regarding these appeals.
Despite the challenging legal landscape, XRP’s price has remained relatively stable, trading around $0.52 this week, despite an overall bullish sentiment in the market. Currently priced at $0.524, XRP has seen a 17% decline this month. However, notable buying activity has been recorded in the derivatives markets, with open interest trending upwards.
As the legal drama unfolds, all eyes will be on Ripple and the plaintiff’s decisions in the coming weeks. The outcome of these proceedings could shape not only the future of XRP but also the regulatory landscape for cryptocurrencies in the U.S.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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