US Court Urges Ripple and CEO Brad Garlinghouse to Explore Alternative Resolution in XRP Lawsuit
Key Points
- The US court has directed Ripple, CEO Brad Garlinghouse, and other defendants to consider an alternative resolution in their ongoing case.
- Defendants, including Ripple and XRP II, seek a final judgment on class action claims and a stay on individual claims.
- The Ripple vs. SEC appeal is set for initial briefing in January, while XRP trades near $0.52 after a recent 17% drop.
In the latest update on the In re Ripple Labs Inc. litigation, Ripple Labs, its CEO Brad Garlinghouse, and XRP II LLC have petitioned the court to finalize judgment on the class action claims and pause the state law claims until the appeals process is complete. The court has, in turn, encouraged the parties to explore a potential alternative resolution.
Judge’s Order for Possible Resolution in Ripple Case
Judge Phyllis Hamilton, addressing the recent filing, noted that Ripple and the plaintiffs jointly requested final judgment and a stay in the XRP lawsuit. However, she instructed both parties to consider voluntarily dismissing the individual claim without prejudice, allowing for potential re-filing after the class action appeal.
The court stipulated, “If the parties are open to this alternative resolution, they should submit an amended order by November 4, 2024. If not, they should file a notice stating their decision.”
Ripple and Plaintiffs Seek Judgment in XRP Class Action Lawsuit
Lead plaintiff Bradley Sostack, along with Ripple Labs, XRP II, and Garlinghouse, requested the court to finalize judgment on the class action securities law violation claims, while suspending proceedings on the state claims until the class action appeal concludes.
After an unsuccessful settlement conference, individual plaintiffs signaled their intent to appeal the court’s summary judgment on the class claims, which span six years of XRP purchases, while the individual claim pertains to a specific January 2018 transaction.
A pretrial conference is scheduled for December 19, with jury selection and trial beginning January 21. Recently, Judge Hamilton ruled on four motions in the Ripple case under Daubert standards, largely favoring the plaintiffs.
Upcoming Ripple SEC Appeals Hearing
The Ripple vs. SEC case is set for the US Second Circuit Court of Appeals, with both parties filing Form C. The SEC has reasserted securities law violation claims against Ripple executives, while Garlinghouse and Chris Larsen have enlisted key attorneys to dispute the charges. The SEC has requested January 15, 2025, as the filing deadline for its main appeal brief.
Despite generally bullish market conditions, XRP’s price remains around $0.52, down 17% this month, with notable trading activity in derivatives markets as open interest continues to rise.
