XRP in troubled waters – With the complaint of the Securities and Exchange Commission (SEC), it was a real sledgehammer that fell on Ripple Labs and its XRP token, last December. However, things could get even worse: one of the other complaints – led by XRP investors – now asks to know all of Ripple’s dealings with the SEC, and demands the production of some very sensitive documents.
They want to know everything about Ripple’s little secrets
Long before the SEC accusations, Ripples Labs was already facing multiple complaints from investors about its XRP token. These complaints were consolidated into a single class action suit , consolidated behind the main complainant, Bradley Sostack .
This group of plaintiffs has just added a new document to their prosecution file, which alleges that the company Ripple and its CEO, Brad Garlinghouse , violated US securities laws by selling their XRP.
This is exactly what the SEC is pointing at. This is why Bradley Sostack and his co-plaintiffs have been asking for access to all electronic communications between Ripple and the SEC, which would relate to XRP, since 2015 .
Documents to be revealed … in full
Another request of this legal request: it turns out that Ripple had to communicate documents that were redacted from certain passages (see example below). However, the complainants consider this to be a totally arbitrary and unwarranted act on the part of the company issuing the XRP.
They therefore ask that Ripple communicate all of these documents again, but removing all this „redaction“ .
Extract from the investor class action against Ripple (page 17) – Source: courtlistener.com
The Court of the Northern District of California will have to rule on the admissibility of this new petition of the plaintiffs on March 25 .
You would have understood it. Aggrieved investors want to use any evidence that can prove that Ripple did indeed organize an illegal offer of securities with its sale of XRP. Between the SEC and angry investors who are rallying against it, Brad Garlinghouse’s company is not ready to get out of legal trouble.