Ripple CEO Brad Garlinghouse addresses misconceptions and misleading headlines surrounding a California Judge ruling in the class action about XRP.
According to Garlinghouse, some crypto media outlets have been making inaccurate and factually incorrect headlines about the California court decision.
A Big Win for XRP and Ripple
Addressing this misconception, the Ripple CEO characterized the court’s decision as a big win for XRP and the company, noting that the ruling judge, Judge Phyllis Hamilton, dismissed all the class action claims in the lawsuit.
He emphasized that nothing about the recent verdict alters the fact that XRP is, in and of itself, not a security, as determined by a New Your District Court last year. Furthermore, Garlinghouse clarified that Judge Hamilton dismissed all allegations that Ripple violated securities laws via its offers and sales of XRP.
Regarding the state law claim scheduled for trial, he said the sole plaintiff in the case did not purchase XRP directly from Ripple.
As many have noticed – and some have already pointed out – there have been numerous misleading and some factually inaccurate headlines describing the decision made by a California judge yesterday in the class action lawsuit about XRP. (I’m happy to see some correcting them – I…
— Brad Garlinghouse (@bgarlinghouse) June 21, 2024
Garlinghouse Stands by His Words
Also, the Ripple CEO could not confirm whether the plaintiff heard the alleged ‘misleading statement’ he was accused of issuing in 2017 before acquiring a ‘couple hundred XRP.’
According to him, the scenario exemplified individuals attempting to exploit the U.S. legal system by distorting facts to seek hundreds of millions of dollars in securities class actions.
Nonetheless, the Ripple exec emphasized that he stands by the alleged ‘misleading statement’ and will address it in the upcoming trial. For context, the so-called misleading statements relate to a 2017 comment Garlinghouse made in a televised interview about the sale of XRP.
Ripple CLO Says XRP Non-Security Status Still Stands
Meanwhile, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty also clarified that Judge Analisa Torres’ ruling affirming that XRP is not a security in itself still ‘stands undisturbed.’
He confirmed that Judge Hamilton dismissed all allegations of Ripple’s securities law violation, leaving only one state law claim regarding Garlinghouse’s 2017 statement, which a jury will decide soon.
To be clear – the CA judge dismissed all allegations suggesting that Ripple violated federal securities law. The NY ruling that XRP is not a security stands undisturbed. 1/2 https://t.co/iY0EYZOjzC
— Stuart Alderoty (@s_alderoty) June 21, 2024
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