Pro-Ripple attorney John Deaton made an important statement to the XRP community. The attorney said there is a class action hearing in federal court today against the payment giant. XRP holders holding the token or selling it at a loss have filed a class action lawsuit against Ripple. The judge did not allow his lawyer to attend the hearing. Here are the details…
Zakinov and Ripple case in Federal Court
The hearing of the Zakinov and Ripple case comes up with the arguments of XRP holders. Plaintiff Bradley Sostak is one of the XRP holders involved in the lawsuit. He also firmly believes that the token is a security. As a result, Sostak requested to be the lead plaintiff in the class action. He urged the court to create a class of all XRP holders who buy, hold or sell XRP tokens at a loss. The list of XRP holders also includes 75,890 participants who sided with Ripple in its debate against the US financial regulator, the Securities and Exchange Commission (SEC).
In the Zakinov vs. Ripple case, the judge just agreed to extend the trial by about a month with trial starting on April 15 2024. The original lawsuit was filed in May 2018. That would be 6 years until trial would start at all. But the laws and rules are clear since 1933! It will… pic.twitter.com/7ud7VwMIEx
— Mr. Huber🔥🦅🔥 (@Leerzeit) March 24, 2023
The second group sided with the company in its defense that “XRP” is not a security. The hearing is key for XRP holders as it is not limited to Ripple’s direct sales and covers secondary and international sales, including in countries where the altcoin is not considered a “security”.
(2/3) The hearing is for oral arguments on the question of certifying the class of XRP holders suing Ripple. The plaintiff, Bradley Sostak, who owned #XRP for two weeks, is asking to be lead plaintiff in the class and is asking to represent all XRP holders who either owned it and…
— CryptoLaw (@CryptoLawUS) April 25, 2023
What impact might the trial have on XRP holders?
Two different groups of XRP holders are watching the trial carefully. These two groups are as follows: those who sided with Ripple in the lawsuit against the SEC and those who criticized the company in a class action lawsuit. The court’s decision will likely have an impact on both groups. The lawsuit has similar components to the SEC’s lawsuit against Ripple. Therefore, the judge’s decision on whether Ripple should be held liable for primary and secondary XRP token sales will affect the price of the asset and the sentiment of its holders.
I assume the public will only be in listening mode, but just like I said with the NY hearings, PLEASE do not interrupt the proceedings and do NOT contact Ripple lawyers, the Plaintiff lawyers, the Court or anyone else associated with the case. 🙏
— John E Deaton (@JohnEDeaton1) April 26, 2023
Currently, the XRP price has gained about 2 percent to its holders and the asset is in an uptrend. According to Huber, an XRP community member, the case is likely to take weeks to months before it is resolved. As a result, Zakinov v. A hearing on the Ripple class action lawsuit is scheduled for later today. According to US legal and regulatory news platform CryptoLaw, the hearing will take place today in California federal court.
Interestingly, the judge granted online access to only 500 people who were required to participate in the proceedings. But all XRP holders, including those who own the cryptocurrency, sell it at a loss, and other investors who still hold the asset class, want to take part in the lawsuit.
