Ripple Labs, Inc. and XRP tokens under securities investigation, US-based law firm announces
A global investor law firm known as Rosen Law Firm announced securities investigation on Ripple Labs, Inc and XRP tokens. They are trying to find out whether Ripple Labs, Inc. violated the federal securities laws related to the sale of Ripple’s XRP tokens.
According to Business Wire report, the law firm is trying to prepare a class action lawsuit in order to recover all the losses that the Ripple’s XRP token’ purchasers suffered. Rosen Law Firm which boasts of having investors throughout the globe was ranked number 1 by ISS Securities Class Action Services, in 2017, for number of securities class action settlements. Since 2013, the firm has been ranking in the top 3 each year.
Lawsuits against Ripple
Another law firm Taylor-Copeland law filed a class action suit against Ripple Labs on May 3. The lawsuit targets Ripple, its subsidiary XRP II, and CEO Brad Garlinghouse, for the sale of unregistered securities. The firm alleges that Ripple’s XRP tokens sale is a violation of U.S. securities laws, CoinTelegraph reported.
Another lawsuit came from California resident, David Oconer. He filed a lawsuit in the Superior Court of California. “Ripple’s public commitment to limit the supply of XRP had its intended effect. In the weeks that followed, the price of XRP rapidly increased, from approximately $0.22 per token on December 7, 2017 to $3.38 per token on January 7, 2018,” the complaint read as cited by CNN.
On June 27, another private XRP investor accused Ripple Labs Inc. and its CEO Bradley Garlinghouse have combined their token XRP with Ripple technology and even mentioned that they illegally profited from the increase in price the whole time.
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