Rosen, a global investor rights law firm has filed a class-action lawsuit against MoneyGram on behalf of investors who have bought the shares of the firm, for allegedly misleading the investors on their partnership with Ripple and their subsequent use of XRP which was deemed as unregistered security by the SEC towards the end of 2020.
The law firm claims that MoneyGram’s action against Ripple only came after the SEC lawsuit and the investors suffered a loss on their investment because of MoneyGram’s actions. The lawsuit claims,
defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
MoneyGram Stalled Its Partnership With Ripple Post SEC’s Lawsuit
SEC filed the class action lawsuit against Ripple and two of its executives for the undigested sale of the security in the form of XRP. Right after the SEC’s lawsuit, several US-based crypto exchanges and financial institutions such as MoneyGram put a halt on XRP use and also downplayed their association with Ripple.
Rosen Law Firm believes MoneyGram’s late actions had put investors at a loss and also promised compensation for those who have bought the securities of MoneyGram between June of 2019 and February of 2021.
Current Status of SEC Lawsuit
When SEC first filed the lawsuit against Ripple, many believed it is the end of the road for XRP and Ripple in the US. However, the regulatory body has made key amendments to their filing since December, where SEC dropped market manipulation charges against Ripple right before the first virtual hearing in the case.
Another major breakthrough came during the first hearing, where Ripple’s legal counsel claimed that SEC had ignored Exchange queries regarding the status of XRP as security in 2019.
— LUDNLXRP (@ludnlxrp) February 22, 2021
These recent developments in the case could play in favor of the crypto company and the current lawsuit filed against MoneyGram might not hold ground based on these developments.