Ripple CEO Brad Garlinghouse recently addressed misconceptions and misleading headlines about a California judge’s ruling in a class action lawsuit concerning XRP. He asserted that some crypto media outlets have made factually incorrect headlines about the court decision. Garlinghouse clarified that the court’s decision is a significant victory for XRP and Ripple.
Judge Phyllis Hamilton dismissed all class action claims in the lawsuit. He emphasized that this verdict does not change the fact that XRP is not a security, as determined by a New York District Court last year. Additionally, Garlinghouse noted that Judge Hamilton dismissed all allegations that Ripple violated securities laws through its offers and sales of XRP.
Related article: Ripple CEO Updates on SEC Lawsuit Verdict Timeline
State Law Claim Scheduled For Trial
Regarding the state law claim set for trial, Garlinghouse pointed out that the sole plaintiff did not purchase XRP directly from Ripple. He explained that the plaintiff’s claim hinges on an alleged misleading statement Garlinghouse made in 2017. However, Garlinghouse could not confirm if the plaintiff heard this statement before acquiring a “couple hundred XRP.”
Related article: Ripple CEO Questions Market’s Reaction to XRP’s Unique Position
Garlinghouse argued that this scenario exemplifies individuals trying to exploit the U.S. legal system by distorting facts to seek substantial sums in securities class actions. Despite this, he emphasized that he stands by the alleged misleading statement and will address it in the upcoming trial. The statement in question relates to a 2017 comment Garlinghouse made in a televised interview about the sale of XRP.
Ripple CLO Confirms XRP’s Non-Security Status
Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that Judge Analisa Torres’ ruling, which affirmed that XRP is not a security, remains undisturbed. Alderoty reiterated that Judge Hamilton dismissed all allegations of Ripple’s securities law violations.
The only remaining issue is the state law claim regarding Garlinghouse’s 2017 statement, which a jury will soon decide. Both Garlinghouse and Alderoty highlighted the court’s decisions as a victory for Ripple and XRP. They stressed that XRP’s status as a non-security remains intact, despite misleading headlines suggesting otherwise.
The upcoming trial will address the sole remaining claim about Garlinghouse’s 2017 statement, but Ripple’s executives remain confident in their legal standing.
