Attorney Deaton thinks the class action from XRP investors is the least of Ripple’s worries.
Attorney John Deaton, Managing Partner at Deaton Law Firm, is the latest legal expert to weigh in on the implication of the class certification suit against Ripple Labs.
In a tweet yesterday, attorney Deaton said the class action is the least of Ripple’s worries. According to him, the plaintiff’s attorney should hope the US Securities and Exchange Commission loses its case against Ripple.
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
Attorney Deaton explained that if the SEC gets a total victory against Ripple, the regulatory agency will collect the money and set up a fund to pay XRP holders.
However, suppose Ripple wins its ongoing case against the SEC. In that case, Judge Phyllis Hamilton will likely follow Judge Analisa Torres’ verdict to decide the class action.
Furthermore, attorney Deaton clarified that the case only applies to United States investors. Although the plaintiff asked for a worldwide class, the judge did not approve the request.
Notably, Deaton asserted that the lawsuit is a mere “pimple” compared to the company’s legal tussle with the SEC. Deaton made the comment while reacting to questions from an XRP holder.
Class certifications happen routinely. Here, the plaintiffs were asking for a worldwide class including U.K. XRPHolders but in the U.K. The FCA said XRP is not a security (same as Japan, Singapore, UAE, etc). It only applies to US investors but, again, this is case is pimple…
— John E Deaton (@JohnEDeaton1) July 5, 2023
Other Attorneys Weigh In
Meanwhile, Attorney Deaton is one of many legal experts who have commented on the recently certified class. Yesterday, Australian-based lawyer Bill Morgan highlighted the prospects of different findings based on whether Ripple sold XRP as a security.
Given Res Judicata on substantive issues only applies to the same parties in different proceedings &, leaving aside the persuasive influence of Torres deciding first, we could see the curious result of different findings on the issue of whether Ripple sold or offered securities
— bill morgan (@Belisarius2020) July 5, 2023
Additionally, pro-XRP lawyer Jeremy Hogan said the class certification ruling would have zero effect on the SEC vs. Ripple lawsuit. Attorney Hogan explained that class certification means the judge thinks more plaintiffs will emerge to combine their claims.
Furthermore, another pro-XRP lawyer Fred Rispoli believes the ruling is bad for Ripple. However, he said that since the lawsuit is going in the same distance as SEC vs. Ripple case, it would also adopt a similar strategy.
For context, the class certification ruling issued on June 30 has given U.S.-based XRP investors the right to sue Ripple for allegedly offering and selling unregistered securities.
The lawsuit, known as Zakinov v. Ripple Labs, saw the plaintiff charge Ripple, its subsidiary XRP II, and its CEO, Brad Garlinghouse.
Following the ruling, thousands of U.S.-based XRP investors can now sue Ripple, alleging the sale of unregistered securities.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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