XRP Lawsuit: US court orders Ripple, CEO Brad Garlinghouse, and other parties to consider alternative resolution before proceeding.
In the latest development of the In re Ripple Labs Inc. litigation, defendants Brad Garlinghouse, CEO of Ripple Labs, Ripple Labs itself, and XRP II LLC have requested the court issue a final judgment on the class action claims, with a stay on individual state law claims until resolved.
The court has responded, asking the involved parties to explore an alternative outcome.
Judge Suggests Ripple and Plaintiffs Reassess in XRP Lawsuit
Judge Phyllis Hamilton notified the parties in a recent court filing regarding their joint request for final judgment and a stay in the XRP lawsuit.
She recommended that they consider voluntarily dismissing the remaining individual claim without prejudice, allowing it to be re-filed after the appeals decision on the class action claims for securities law violations involving Ripple, Brad Garlinghouse, and XRP II LLC.
“If the parties are amenable to this alternative resolution, the court requests that they file an amended proposed order – and if the parties are not amenable, the court requests that they file a notice to that effect – by November 4, 2024,” stated the court order.
Joint Motion in Ripple XRP Class Action Lawsuit
Lead plaintiff Bradley Sostack, along with Ripple Labs, XRP II, and Brad Garlinghouse, requested a final judgment on the class action claims related to securities law violations.
They also sought a stay on proceedings for state law claims until the class action claims reach resolution.
A settlement conference aimed at resolving the XRP lawsuit did not succeed. The individual plaintiffs plan to appeal the summary judgment order on the class claims, which concern all XRP transactions over six years, while the individual claim focuses on a single purchase in January 2018.
The pretrial conference is scheduled for December 19, with jury selection and trial beginning on January 21.
Recently, Judge Hamilton issued orders on four motions under the Daubert rule, mostly favoring the plaintiffs.
Ripple SEC Case Also Heads for Appeals Hearing
The Ripple vs. SEC case is moving forward in the U.S. Second Circuit Court of Appeal as both parties filed Form C.
However, the SEC has unexpectedly reinstated securities law violation charges against Ripple executives Brad Garlinghouse and Chris Larsen.
Ripple executives Garlinghouse and Larsen have brought on prominent attorneys for the appeals court to seek dismissal of the charges.
The SEC has requested January 15, 2025, as the due date for its main brief in the appeal.
XRP’s price remains around $0.52, despite a generally bullish market, trading at $0.524—a 17% decline this month.
Significant buying has been observed in derivatives markets, with open interest reaching new highs.
