Ripple XRP Lawsuit: Judge Referred Class Action For Settlement

A U.S. district court judge referred Ripple case to a magistrate judge for settlement after the court granted in part and denied in part the defendants’ motion for summary judgment in the Zakinov v. Ripple lawsuit. The judge also sided with the SDNY court’s ruling that XRP sales are securities, gaining buzz in the XRP community.

Ripple Class Action Lawsuit Moves For Settlement

District Court for the Northern District of California’s Judge Phyllis Hamilton issued an order in the class action lawsuit against defendants Ripple, XRP II, and CEO Brad Garlinghouse.

The judge granted defendants’ motion for summary judgment on the federal and state class claims. Defendants are denied summary judgment on plaintiff Sostack’s individual claim under California law, as reported by CoinGape. Moreover, Ripple’s motion to exclude the testimony of Steven P. Feinstein was denied as moot, and plaintiff’s motion to exclude the testimony of S.P. Kothari and M. Laurentius was denied as moot.

In a further order by Judge Phyllis Hamilton, the Ripple case was referred to Magistrate Judge Robert Illman for resolution between the parties. Judge Hamilton agreed with SDNY Judge Torres’ summary judgment on XRP programmatic sales, plaintiffs failed to prove that XRP is a security as investors rely on Ripple’s efforts for profits.

Also Read: SEC vs Ripple News – “Judge Torres Was Right On XRP”, SEC May Not Appeal

XRP Lawsuit Impact on Ripple Vs SEC

Judge Hamilton sided Judge Torres’ decision has led to buzz in the XRP army about its impact on the Ripple vs SEC lawsuit stirring speculation over XRP.

Former SEC lawyer Marc Fagel said the biggest concern for Ripple is the SEC using this California case in the Second Circuit in its appeal against Judge Torres’ summary judgment on XRP. However, the court must first state whether XRP sales were security to reach the fraud issue.

Pro-XRP Bill Morgan and Fagel also added that the lawsuit may not have broader implications even if in case of adverse finding for Ripple.

She did not reject the holding. She did not apply it on a summary judgment motion to rule out at trial a finding that retail buyers may have an expectation of profits based on Ripple’s efforts rather than other factors such as general crypto market trends.

— bill morgan (@Belisarius2020) June 21, 2024

XRP price fell 0.41% in the last 24 hours, with the price currently trading at $0.474. Bulls have failed to hold price over the $0.50 level, with a 24-hour low and high of $0.4711 and $0.4795, respectively. The trading volume has decreased by 18% in the last 24 hours, indicating a drop in interest among traders.

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