Another Class-Action Lawsuit For Ripple, This Time By Florida Resident

Another class-action lawsuit for ripple was filed recently, this time by a Florida resident who lost $50 by investing XRP in 2020 so let’s read more in today’s Ripple news.

Tyler Toomey, the Florida resident is now taking on ripple after suffering damages, alleging that in the class-action lawsuit Ripple illegally sold XRP in a US State. The lawsuit comes a month after the SEC filed its own lawsuit against the platform. Payment processor and XRP issuer Ripple got hit with another class-action lawsuit, months later after the US regulator started the process against the company.

The new lawsuit was filed by a person who made a small investment of $100 in XRP in 2020 and it lost 50% in the weeks after. Investor Tyler Toomey said he bought 135 XRP in November 2020 when the prices were rising. He later sold his holdings in December and lost $48.50 on his initial capital. This was enough for him to launch the lawsuit. He alleged that Ripple unlawfully sold millions of dollars worth of XRP tokens to other people as well, adding that the company’s founders profited off the sales:

 “The Defendants [Ripple] sold millions of dollars (or more) of XRP tokens, which are securities under Florida law, to Florida investors without registering the same either with federal or Florida authorities.”

Toomey on behalf of other investors in Florida that were investing XRP coins, now demands justice after suffering from damages.  The lawsuit seeks to hold Ripple’s CEO and co-founder liable for allegedly violating the local and national investors acts as well as to misrepresenting the nature of the tokens and profiting from “unjust enrichment.” The allegations are similar to the ones that the SEC made. The SEC alleged Brad Garlinghouse and Chris Larsen made over $600 million while distancing Ripple and XRP. David Schwartz said on the matter, although he wasn’t directly named in the lawsuits:

 “The people who created XRP are pretty much the same as the people who created Ripple and they created Ripple originally to, among other things, distribute XRP.”

The company didn't exist when XRP was created. We didn't start soliciting investment in the company until we could demonstrate the working ledger. We say that for one reason and one reason only — because it's true.

— David Schwartz (@JoelKatz) September 17, 2020

In the meantime, Garlinghouse maintained his innocence and said that the SEC wrongfully alleged his company and himself adding that his company will prepare for its own legal action.