Ripple Labs Beats Most Investor Fraud Claims in XRP Suit

Oct. 5, 2020, 8:03 PM

A federal judge in Oakland mostly dismissed fraud claims pertaining to alleged misstatements made by Ripple Labs Inc. and its chief executive officer for a second time, concluding investors failed to satisfy heightened pleading requirements.

But Judge Phyllis J. Hamilton allowed causes of action for Ripple’s alleged sale of unregistered securities in California to remain intact.

The investors, who claimed they lost money after selling tokens of virtual currency “XRP” because they were duped by Ripple’s promotional statements, said the company violated federal securities law and made false statements under California law. Hamilton, of the U.S. District Court for the ...

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