XRP Lawsuit Update: Judge Requests Ripple and Plaintiffs to Consider Dismissal Options

XRP Lawsuit Update: Judge Requests Ripple and Plaintiffs to Consider Dismissal Options

In a recent development within the In re Ripple Labs Inc litigation, Ripple Labs, CEO Brad Garlinghouse, and XRP II LLC have collectively requested that the court issue a final judgment on the plaintiff’s class action claims. Additionally, they are seeking a stay on individual state law claims until the class action appeal is resolved. Judge Phyllis Hamilton, overseeing the case, has responded by asking the parties to explore an alternative path.

Judge Encourages Alternative Resolution in Ripple Labs Case

Judge Hamilton has suggested that Ripple Labs and the plaintiffs consider a voluntary dismissal without prejudice of the remaining individual claims. This approach would allow these claims to be refiled if needed, pending the outcome of the class action securities violation claims appeal involving Ripple, Garlinghouse, and XRP II LLC.

The judge has asked for an amended proposed order by November 4, 2024, should the parties agree to this option. Alternatively, if they do not accept this path, they must notify the court by the same date.

Joint Motion for Judgment in Class Action Claims

Lead plaintiff Bradley Sostack, along with Ripple Labs, XRP II, and Brad Garlinghouse, have petitioned the court to issue a final judgment specifically on class action claims concerning securities law violations. In addition, they requested a stay of individual state law claims until the conclusion of the class action proceedings. The settlement conference held to resolve the XRP lawsuit was unsuccessful, with the individual plaintiffs indicating their intention to appeal the court’s previous summary judgment on the class claims.

The current class claims encompass all XRP purchases over a six-year span, while the individual claim is tied to a single buyer’s transaction in January 2018. A pretrial conference is slated for December 19, with jury selection and the trial scheduled to begin on January 21. Recently, the court ruled in favor of the plaintiffs on several Daubert motions, representing a partial win in their favor.

Ripple SEC Case Progresses Toward Appeals

Simultaneously, the XRP vs SEC lawsuit is advancing in the U.S. Second Circuit Court of Appeals, as both parties recently filed Form C. In a new turn, the SEC has renewed its allegations of securities violations against Garlinghouse and Chris Larsen. Ripple executives have brought on prominent legal representation to help dismiss these claims, with the SEC requesting a January 15, 2025, deadline for submitting its main appellate brief.

Market Reaction: XRP Price Holds Steady

Amid these legal updates, XRP is trading at approximately $0.524, reflecting a 17% decline this month despite generally bullish market conditions. Significant trading activity in the derivatives market has led to rising open interest, indicating sustained attention from investors.

This unfolding legal battle will be closely watched, as its outcome could set significant precedents in cryptocurrency regulation and securities law.