A U.S. law firm has filed a class action lawsuit against Ripple, calling XRP an unregistered security. Law firm Taylor-Copeland law has filed a class action suit against Ripple Labs for the sale of unregistered securities, according to the official complaint filed yesterday, May 3.

The lawsuit targets Ripple, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse, alleging that Ripple’s sale of XRP tokens is a violation of U.S. securities laws. According to the complaint, the plaintiff, an individual named Ryan Coffey, purchased 650 XRP on Jan.

5 and sold it on Jan. 18 of this year for USDT, which he then exchanged for USD, sustaining a loss of around 32 percent, or $551.89.

One of the points in the body of the lawsuit is that the plaintiff did not expect to lose money on his investment due to the promotional practices of Ripple Labs, i.e. retweeting favorable article about XRP and attendendance by Garlinghouse at crypto conferences: “XRP purchasers reasonably expected to derive profits from their ownership of XRP, and Defendants themselves have frequently highlighted this profit motive [ Read more from cointelegraph.com…

thumbnail courtesy of cointelegraph.com