Today, the lawsuit that accuses Ripple Labs of selling XRP as unregistered security is gaining momentum. The lawsuit is taking place in California, and a hearing for the class action certification is scheduled for 4:30 pm Eastern Time.
The dispute between Ripple Labs and the Securities and Exchange Commission (SEC) is one of those legal issues where the outcome can alter over time. John Deaton provided an essential update for XRP holders in the most recent development.
On his Twitter account, he shared an update that a class action lawsuit against Ripple Labs/Zakinov filed in 2020 will have a hearing on Wednesday, April 26, 2023, at (4:30 pm ET) in a federal court in California.
A class certification order is a court order that grants plaintiffs the ability to proceed in a class action lawsuit on behalf of a certain class of plaintiffs. If the judge already denies the order, the case, which has been running since 2018, may be over sooner than planned.
In February, the founder of Crypto Law and an attorney supporting XRP investors filed an amicus brief in the case. In theory, though, the hearing is open to the public.
I anticipate that the public will be present as audience members only, but as I said at the hearings in New York, PLEASE do not interrupt the proceedings and DO NOT contact Ripple’s lawyers, the plaintiffs’ lawyers, the court, or anyone else associated with the case.
Deaton writes. Surprisingly, the judge granted online access to only 500 members of the general public.
What Is The Importance Of Today’s Hearing For Ripple
The hearing aims to hear oral arguments on whether or not to certify the group of XRP owners suing Ripple. Bradley Sostak, who had held XRP for two weeks, is seeking to become the lead plaintiff in the class action.
He claims XRP is a security. Sostak requests the court to form a class of all XRP owners who purchased and presently hold XRP or sold XRP at a loss.
The proposed class action would encompass XRP holders worldwide, including the 75,890 XRP investors who disagree with the plaintiffs in Zakinov and support Ripple in the SEC case.
Furthermore, the proposed class action does not confine itself to direct Ripple sales. Still, it includes all XRP transactions, including secondary and foreign sales, in jurisdictions where XRP is designated non-security.
In his amicus brief, John E. Deaton requested the court not to approve the class certification due to these conflicts and the fact that only a few XRP holders allege that XRP is an unregistered security.
Although the lawsuit has been ongoing for five years, the court’s scheduling implies it could take a long time. Huber, an XRP community member, recently published the court schedule. That would be 6 years before the trial.
Related Reading: | Ripple Advocate Backs Coinbase’s Lawsuit Against SEC, Predicts A Win For Crypto |