Ripple Victory Could Resolve Class Action, Says XRP Attorney

XRP lawyer John Deaton recently shared his opinion on the US class action suit against Ripple by XRP holders.

Recall that on June 30, 2023, Judge Phyllis J. Hamilton stated that the US XRP investors had fulfilled the 4 requirements empowering them to sue Ripple for their virtual token losses.

By that, XRP investors are legally supported to sue Ripple for offering unregistered securities leading to the loss of their funds.

John Deaton's Statement on XRP Situation

In a Twitter post on July 5, John Deaton explained that the present class-action suit against Ripple Labs, its subsidiary XRP II, and its Chief Executive Officer may not be that worrisome for the firm.

This class action is the least of Ripple's worries. In fact, the plaintiffs' attorney should be hoping the SEC loses and Ripple wins. If the SEC were to get a total victory, the SEC would be the one to collect the money and set up a fund to pay XRP holders thus, gutting this...

- John E Deaton (@JohnEDeaton1) July 5, 2023

In a recent tweet, Deaton suggested that the plaintiff's lawyer should be expecting a Ripple victory in the current SEC suit.

Deaton emphasized that if the United States Securities and Exchange Commission (SEC) were to win the case totally, it would be the agency receiving the funds, setting up a fund to pay XRP token holders, thus undermining the class-action case.

Deaton addressed concerns from UK XRP token holders, highlighting that the certified classes in the ongoing class-action legal case apply only to investors in the United States.

He also pointed out the Financial Conduct Authority (FCA) in the United Kingdom and equivalent agencies in Singapore, Japan, and the United Arab Emirates, stating that XRP is not a security.

Therefore, the certification does not impact XRP token holders within these jurisdictions.

Ripple Labs Crypto Investors Obtain Class Status in the Ongoing Securities Lawsuit

Recently, Ripple Labs Inc. received the investor class certification in the securities lawsuit over crypto token losses.

Ripple Labs, its CEO, and its subsidiary company XRP II challenged the certification. However, the class had fulfilled the four main requirements for certification, as stated by US District Court Judge, Judge J. Hamilton, for the North District of California on June 30. The Judge also noted that the plaintiffs stated that common class challenges would rule over individual cases.

But Ripple argued that the plaintiffs could not demonstrate that they would efficiently protect the class's interests because the majority of proposed members disagreed with the premise of the suit. One plaintiff, Bradley Sostack, made a secondary transaction, classifying his claims under unique defenses.

While arguing about that, Hamilton stated that the merits point of whether XRP is a security would be equal for all class members, and the regular opt-out process can solve any disagreements by future class members concerning the premise of the suit.

Also, the court stated that Ripple failed to back up their claim as to why Sostack's secondary purchases made his claim less valuable than the claims of other class members.

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