Ripple’s Chief Executive Officer, Brad Garlinghouse, and Chief Legal Officer Stuart Alderoty have issued statements clarifying the court ruling in the latest class action lawsuit against Ripple. The CEO pointed out that several headlines incorrectly report the California court’s decision.
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Ripple’s CEO and Chief Legal Officer issued separate statements clarifying the California court ruling in the class action suit against Ripple. The statements follow the June 21 ruling by the California court under Judge Phyllis Hamilton, dismissing all class action suits against the Blockchain company. The company’s executives released the statements to address the misinformation surrounding the XRP class action lawsuit.
Brad Garlinghouse clarifies Ripple’s case rumors
Brad Garlinghouse, Ripple’s CEO, went on X to clarify the rumors surrounding the procedural win in the California courts on June 21. In his statement, he acknowledged the misleading and inaccurate headlines describing the Court’s decision. He stated that dismissing the class action claims was a big win for them.
As many have noticed – and some have already pointed out – there have been numerous misleading and some factually inaccurate headlines describing the decision made by a California judge yesterday in the class action lawsuit about XRP. (I’m happy to see some correcting them – I…
— Brad Garlinghouse (@bgarlinghouse) June 21, 2024
He added that the decision did not negate the fact that XRP is not a security, as previously held by the New York courts. The California ruling dismissed all four claims that Ripple contravened any federal securities laws by issuing the XRP token without registering it as a security with the U.S. Securities and Exchange Commission (SEC).
Garlinghouse also clarified that the state law claim is now scheduled for trial, where a jury will decide if the CEO misled unsuspecting investors during a televised interview on the Business News Network. Judge Hamilton stated that even though XRP is not a security, it could still be considered such when sold to non-institutional investors.
Also read: Did Ripple mislead investors? California lawsuit targets CEO’s statements on XRP
Garlinghouse also addressed the allegations of misleading statements made in 2017, stating, “I stand by what I said and look forward to shedding light on this issue during the hearing.”
In his statement, Garlinghouse added that the claimant, in the pending suit, did not buy the XRP token directly from Ripple. He said the plaintiff only owned a couple hundred of the token and could not confirm whether he heard the statement in the interview before his trade. Garlinghouse termed the claim as another attempt by trolls to take advantage of the loopholes in the United States justice system and distort disclosures as they seek to obtain the hundreds of millions in class action suit settlements.
Stuart Alderoty talks about court decision
The CLO, Stuart Alderoty, added to the CEO’s sentiments by clarifying that the California court dismissed all allegations that Ripple violated Federal securities law.
To be clear – the CA judge dismissed all allegations suggesting that Ripple violated federal securities law. The NY ruling that XRP is not a security stands undisturbed. 1/2 https://t.co/iY0EYZOjzC
— Stuart Alderoty (@s_alderoty) June 21, 2024
The Friday ruling upheld the New York court decision, stating that XRP is not a security. Alderoty also commented on the state law claim over allegations of misrepresentation in 2017, noting that the plaintiff could not prove his case. He maintained that the plaintiff could not illustrate that he bought the tokens after listening to the 2017 statement, leading to a loss of funds.
Alderoty expressed his optimism on the individual state law claim, stating that they were eager for the cross-examination phase of the trial.
Cryptopolitan reporting by Collins J. Okoth
