While the SEC case against Ripple and XRP has become a hot button topic across the entire industry, a few members of the XRP community have filed a lawsuit against the SEC for this action. The lawsuit has been filed for a Class defined as follows:
All United States persons who owned or continue to own the Digital Asset XRP purchased before or on about December 22, 2020, excluding all persons, if any, who purchased XRP directly from the Company Ripple and or from any of Ripple’s Executives. The Class will also exclude any owners of XRP who purchased all of their XRP holdings on or after December 23, 2020.
Additionally, the dictated Prayer for Relief is as follows:
a) The Petitioners seek immediate relief requesting the Court order Respondents to amend its complaint against Ripple to exclude the claim that the XRP owned by Petitioners constitute securities.
b) For an Order certifying that the action maybe maintained as a class action, certifying Petitioners as representative of the Class, and designating the undersigned counsel as lead counsel for the Class;
c) For an award of equitable relief as follows:
1) Imposing a constructive trust for any funds awarded against Respondent on behalf of the class;
2) If the SEC receives any funds from a settlement or verdict with Ripple Labs, Brad Garlinghouse and/or Chris Larsen, including but not limited to funds Case 1:21-cv-00001 Document 1 Filed 01/01/21 Page 26 of 28 PageID #: 2627 from a penalty, civil fine, interests, disgorgement, or any other funds, those funds will go into the constructive trust;
d) For actual damages to be determined at trial;
e) For reasonable attorney’s fees;
f) For an award of costs;
g) For any other relief the Court might deem just, appropriate, or proper; and,
h) For pre and post-judgement interest on any amounts awarded.
There is no other remedy available to the Petitioners. All major U.S. exchanges have indicated that they will either delist or suspend all XRP trading effective January 19, 2021. Once these exchanges delist and other suspend all XRP activity, the XPR owned by Petitioners will become untradeable and thus lose all value and become useless
Since Brad Garlinghouse announced that Ripple would be facing a lawsuit from the SEC, the digital asset XRP has fallen in value by over 50% wiping billions of dollars from the market cap of the asset. The entire class action lawsuit can be viewed via The Defi Standard at the link below:
Notes: This is an ongoing case.
File Date: 1/1/2021