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Ripple Labs slammed with another class-action suit

Crypto ban

TL;DR Breakdown

  • Tyler Toomer filed a new class-action lawsuit against Ripple Labs.
  • The crypto company’s legal troubles continue.

A new class-action lawsuit has been filed against Ripple Labs by Tyler Toomey. According to this new lawsuit, the San Francisco-based crypto company has been accused of breaking the Florida Securities and Investor Protection Act by selling its XRP token to retail investors without any form of restrictions.

Tyler Toomey drags Ripple Labs to court

The lawsuit alleges that Ripple Labs decided to sell its token since the firm was unable to maintain its expenses again. This forced them into selling the asset to all and sundry while, at the same time, controlling its supply and liquidity. 

It was also alleged that Ripple Labs made the bulk of its revenue through the sale of the XRP. 

Toomey’s lawsuit also drags the firm’s CEO, Brad Garlinghouse, as an individual defendant in this case. According to him, Garlinghouse sold close to $150 million XRP between 2017 and 2019 while persistently luring more investors into buying the token. The lawsuit cited his interviews with different media houses where the Ripple boss claimed he was also a deep investor in the token. He predicted that the token market cap could reach “trillions of dollars.”

Ripple facing torrents of legal battles

Apart from this new lawsuit filed by Tyler Toomer, Ripple currently faces a case filed against it by the United State Securities and Exchange Commission (SEC) that accuses the company of selling a security as a digital asset. While the firm denies any wrongdoing, its legal battles have compounded.

Tetragon, one of the leading asset managers, is currently looking to redeem its equity in Ripple after it led the Series C funding round in December 2019. The firm has also been battling a lawsuit filed against it since 2018 by Bradley Sostack. Sostack’s filed case is quite similar to Toomey’s as they are both class-action lawsuits.

Dennis Mugambi

Dennis Mugambi

Dennis is a content writer with a deep understanding of the blockchain domain and cryptocurrency field. He infuses cold data with flair to make technology and finances mind-blowing. His reports both fascinate and awaken the readers.

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