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Ripple Wins Partial Summary Judgment in Securities Lawsuit

The U.S. District Court for the Northern District of California has issued an order granting in part and denying in part the motion for summary judgment in a lawsuit concerning allegations of securities law violations against Ripple Labs, XRP II, and Ripple CEO Brad Garlinghouse.

Court Ruling on Ripple’s Securities Lawsuit

The U.S. District Court for the Northern District of California issued an order on Thursday regarding the summary judgment motions in the litigation against Ripple Labs and its affiliates. U.S. District Court Judge Phyllis J. Hamilton’s decision addresses multiple claims involving securities law violations, “granting in part and denying in part” the motion for summary judgment. The court document states:

Defendants are granted summary judgment on the federal and state class claims. Defendants are denied summary judgment on plaintiff Sostack’s individual claim under California law.

“This is a securities case,” the court document describes. This case concerns allegations of securities violations against Ripple Labs, XRP II (a subsidiary of Ripple), and Ripple CEO Brad Garlinghouse. Plaintiff Bradley Sostack asserts that Ripple failed to register XRP as a security under federal and state laws and that Ripple and Garlinghouse made misleading statements about XRP.

The court granted summary judgment in favor of Ripple on several claims. Specifically, the court found that the federal securities claims were barred by the statute of repose, which prohibits claims brought more than three years after the security was first offered to the public. Additionally, the court ruled that the state securities claims failed because the plaintiff could not establish privity between the XRP purchasers and Ripple or its agents, as required under California law.