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Court Sides with Ripple in Landmark XRP Class Action Lawsuit

Ripple Labs has recently secured a significant legal victory as the US Court of Appeals for the Ninth Circuit upheld a summary judgment against investors who claimed that the company sold unregistered securities through its XRP tokens.

This ruling clarified that the federal Securities Act claims were time-barred, meaning the statute of repose had already expired by the time the class action was filed.

The lead plaintiff in the case, Bradley Sostack, purchased XRP in early 2018, but the court determined that XRP was initially offered to the public starting in 2013, which reset the legal timeline for any claims.

Ripple's defense highlighted that over 500 million XRP had been sold on the Ledger's built-in exchange as early as 2013, asserting that these transactions were public sales.

The court firmly rejected attempts by Sostack to argue that Ripple's actions in 2017 constituted a new offering, reinforcing that the nature of XRP remained unchanged and that all XRP transactions are interchangeable.

As a result, the court affirmed Ripple's position and dismissed the allegations from 2018 and 2019 as they were outside the permissible time frame for claims under Section 13 of the Securities Act.

This favorable decision for Ripple comes in a challenging regulatory environment, potentially bolstering its credibility in the market.

As Ripple emerges from this legal challenge, XRP has shown resilience, trading at $1.88 at the time of this announcement.

Investors and analysts alike will be watching closely to see how this ruling impacts Ripple's future endeavors and the broader regulatory landscape for cryptocurrencies.

With the dismissal of this class action, Ripple continues to navigate through the complexities of legal scrutiny within the cryptocurrency sector.