Today marks a pivotal hearing in the Zakinov v. Ripple class action lawsuit, which could have significant implications for Ripple and the future of its XRP token. Scheduled for 08:30 PM (UTC) in California’s federal court, the hearing will focus on the class certification for XRP holders suing XRP. If the news caught your attention, continue reading the Zatrun.com content below.
What Is the Zakinov v. Ripple Class Action Lawsuit?
The lawsuit was filed in January 2020 by Bradley Sostak, an XRP holder who claims that XRP violated securities laws by selling XRP to investors without registering it as a security. Sostak is seeking to represent all XRP holders who have lost money as a result of Ripple’s alleged wrongdoing.
What Is at Stake in the Hearing?
If the court certifies the class, it would mean that Sostak could represent all XRP holders in the lawsuit. This would give him a much stronger bargaining position in negotiations with XRP and could lead to a larger settlement.
What Are the Arguments for and Against Class Certification?
XRP argues that the class should not be certified because there are too many different types of XRP holders with different interests. The company also argues that Sostak does not have the standing to represent all XRP holders because he did not buy XRP directly from XRP.
Sostak, on the other hand, argues that the class should be certified because there are common questions of law and fact that apply to all XRP holders. He also argues that he has the standing to represent all XRP holders because he is a typical investor who lost money as a result of Ripple’s alleged wrongdoing.
What Are the Implications of the Hearing for Ripple and XRP?
The outcome of the hearing could have significant implications for Ripple and XRP. If the class is certified, it would be a major victory for Sostak and could lead to a larger settlement. This could also damage Ripple’s reputation and make it more difficult for the company to raise capital.
On the other hand, if the class is not certified, it would be a victory for XRP. The company would be able to avoid a lengthy and expensive lawsuit and could focus on its business. The hearing today is a critical moment in the Zakinov v. XRP class action lawsuit. The outcome of the hearing could have significant implications for Ripple and XRP. We will be closely monitoring the hearing and will provide updates as they become available.