Class action against Ripple (XRP) will continue, is the decision of the Federal Judge Phyllis Hamilton in Oakland, California.
Ripple failed to convince the judge to drop the claims and dismiss the entire lawsuit according to a report published by Bloomberg on February 26.
The lawsuit claim left in place by Hamilton allegedly states that Ripple has been selling unregistered securities. Ripple is the company behind XRP, the third-largest cryptocurrency in the world.
Hamilton did not agree with Ripple’s complaints that the lawsuit wasn’t filed in time because XRP was offered for sale in the markets since 2013. Ripple also argued that the lawsuit threatens to destroy their business which had a trading volume greater than $500 billion in the last years.
On the other side, investors said that they have been lured by Ripple’s promotional statements and had lost money investing in XRP.
Concerns have arisen with the Wednesday court decision, creating fear that regulators may find XRP an unregistered security and ban the cryptocurrency trading.
However, some good news for Ripple are that Judge Hamilton dismissed investors’ claims that Ripple made false statements under the California Law, leaving the door open for the investors to come forward with an amended lawsuit.
XRP price fell more than 14% this week and is actually $0.235 at the time of writing.