Another class-action lawsuit has been filed against Ripple Labs, CEO Brad Garlinghouse, and its subsidiary XRP II LLC. The latest lawsuit alleges that the defendants sold millions of dollars of XRP without registering either with the federal or the authorities in Florida. The lawsuit follows the recent one filed by the U.S. Securities and Exchange Commission (SEC) alleging that Ripple sold unregistered XRP securities for over $1.38 billion. Ripple Faces Lawsuit Over XRP Sale in Florida The class-action lawsuit names Ripple Lab Inc., XRP II LLC, and Garlinghouse as the defendants for allegedly selling millions of dollars or more in XRP tokens since 2013 without registering either with the federal or authorities in Florida. The lawsuit has been filed by Tyler Toomey, a resident of Florida, claiming that he owned 135 XRP in November 2020 (worth about $100 at the time). Toomey then sold the tokens in December 2020 at a loss of about 50%. Even though his own loss is small, he seeks to represent a class of persons or entities in the State of Florida who purchased XRP, giving power to other XRP investors in Florida to also join the case. Toomey is also seeking monetary compensation including reasonable attorney’s fees, expenses, and costs of the suit, on his own behalf and on behalf of other class members. Ripple Maintains XRP Not a Security Recently, the U.S. Securities and Exchange Commission (SEC) has also filed a lawsuit against Ripple Labs, Garlinghouse, and its co-founder Christian Larsen alleging that they sold over 14.6 billion units of XRP for at least $1.38 billion. Following the lawsuit, several major crypto exchanges delisted XRP, including Coinbase, Binance, Okcoin, and Blockchain.com among others. Meanwhile, Ripple has maintained that XRP is not a security and is planning to fight the SEC charges. Ripple and the SEC are set to meet for a pretrial conference on February 22.
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