Ripple Labs Seeks to Defeat Investor Class Action Certification

Ripple Labs urged a federal judge Wednesday to deny class certification in an investor lawsuit alleging losses from the crypto payments company’s virtual currency tokens that were “created out of thin air.”

Judge Phyllis J. Hamilton, after over an hour of arguments via Zoom, took under advisement the investors’ motion to certify two classes—a federal securities claim of XRP token purchasers globally and a California class of crypto buyers. The parties argued over whether the class has sufficiently been defined or is overly broad, the role of the purchasers’ intention—whether for investment or to effect transactions—and valuation of losses for ...