A Florida resident has filed a class-action lawsuit against Ripple Labs and CEO Brad Garlinghouse, in which he accused them of violating state securities laws and illegal enrichment.
According to Tyler Toomey, the defendants knew the XRP token was a security but misled investors with false claims.
The plaintiff noted that Ripple did not register with the Florida Financial Regulatory Authority prior to selling the token to state residents. Toomey believes the sales were “millions of dollars” and the defendants made illegal profits.
He himself acquired 135 XRP in November 2020 for $ 97.80. In December, Toomey sold the tokens in two batches, taking a loss of $ 48.56, or nearly 50%.
The investor seeks compensation for damages and legal costs, the defendants are found guilty of violating the rules listed in the lawsuit, the appropriate fines are awarded to them and a ban on further activities.
In accordance with federal rules of civil procedure, Toomey demanded a jury on all matters related to the lawsuit.
On December 22, the Securities and Exchange Commission (SEC) of the United States accused Ripple of selling unregistered securities in the form of XRP in the amount of $ 1.3 billion. Preliminary hearings will be held on February 22, 2021.
In January, Tetragon Financial Group filed a lawsuit against the California-based company, which led a $ 200 million Series C funding round in 2019.
For the second year now, Ripple is suing a group of investors who accuse the XRP issuer of violating securities laws.
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