A U.S. district court judge referred Ripple case to a magistrate judge for settlement after the court granted in part and denied in part the defendants’ motion for summary judgment in the Zakinov v. Ripple lawsuit. The judge also sidelined the SDNY court’s ruling that XRP programmatic sales are not securities, raising hot debate in the XRP community.
Ripple Class Action Lawsuit Moves For Settlement
District Court for the Northern District of California’s Judge Phyllis Hamilton issued an order in the class action lawsuit against defendants Ripple, XRP II, and CEO Brad Garlinghouse.
The judge granted defendants’ motion for summary judgment on the federal and state class claims. Defendants are denied summary judgment on plaintiff Sostack’s individual claim under California law, as reported by CoinGape. Moreover, Ripple’s motion to exclude the testimony of Steven P. Feinstein was denied as moot, and plaintiff’s motion to exclude the testimony of S.P. Kothari and M. Laurentius was denied as moot.
In a further order by Judge Phyllis Hamilton, the Ripple case was referred to Magistrate Judge Robert Illman for resolution between the parties. Judge Hamilton didn’t agree with SDNY Judge Torres’ summary judgment on XRP programmatic sales, claiming that investors did rely on Ripple’s efforts for profits.
Also Read: SEC vs Ripple News – “Judge Torres Was Right On XRP”, SEC May Not Appeal
XRP Lawsuit Impact on Ripple Vs SEC
Judge Hamilton sidelining Judge Torres’ decision has raised speculation in the XRP army about its impact on the Ripple vs SEC lawsuit stirring concerns over XRP’ status as not a security.
Former SEC lawyer Marc Fagel said the biggest concern for Ripple is the SEC using this California case in the Second Circuit in its appeal against Judge Torres’ summary judgment on XRP. However, the court must first state whether XRP sales were security to reach the fraud issue.
Pro-XRP Bill Morgan and Fagel also added that the lawsuit may not have broader implications even if in case of adverse finding for Ripple.
She did not reject the holding. She did not apply it on a summary judgment motion to rule out at trial a finding that retail buyers may have an expectation of profits based on Ripple’s efforts rather than other factors such as general crypto market trends.
— bill morgan (@Belisarius2020) June 21, 2024
XRP price slipped to a low of $0.486 to trade range-bound this week, with the price currently trading at $0.489. The price jumped over the $0.50 level but retraced back, with a 24-hour high and low of $0.4906 and $0.5002, respectively. The trading volume has increased by 9% in the last 24 hours, indicating some interest in traders.
Also Read: Bitcoin Spot ETFs Suffer $140M Outflow, Marking Five-Day Decline
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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
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