Rosen Law Firm investigates the case of Ripple and XRP. The investigation puts the question of whether Ripple Labs, in connection with the coin, has violated the California State Securities Law. The firm is preparing a class action lawsuit on behalf of all investors who lost money as part of XRP trading.
On August 7, Rosen Law Firm announced in a press release that is investigating Ripple Labs. The subject of this investigation is Ripple’s issuance of XRP coins, which may violate the California State Securities Law. Rosen Law Firm is an international law firm well established which defends the investor interests.
Until July 2018, the investors have filed three lawsuits against the company before the California Supreme Court. Each suit claims that the company sold securities in the form of the token XRP. Many investors alleged a violation of law in the way Ripple issued the tokens.
In the claimant’s view, the token is a security which is not registered, so the issue is illegal. To add fuel to the fire, Ripple Labs holds 55 billion of the unissued 61 billion XRP tokens in an escrow and has been accused of price manipulation.
Ripple CEO Brad Garlinghouse stated that the XRP token is open source and independent of the company use cases. In addition, the token has far more functions than a security. Also, the CMO Cory Johnson came forward and declared that is only a payment service.
Nonetheless, the law firm Rosen Law Firm is preparing a class action lawsuit on behalf of investors who have incurred losses while trading.