Ripple Wins Appeal, Ending Federal Securities Class Action

US Court Affirms Dismissal of Ripple Securities Case
A federal appeals court has upheld the dismissal of a class action accusing Ripple Labs of selling its XRP cryptocurrency as unregistered securities, effectively ending the long-running legal battle.

The lawsuit, originally filed in 2018, alleged that Ripple violated US securities laws by selling XRP without registering it with the Securities and Exchange Commission (SEC). The complaint claimed that Ripple’s sales, including distributions made in 2017, constituted unlawful securities offerings.


Lower Court Ruling

The case was first dismissed in June 2024 by Judge Phyllis Hamilton, who ruled that the claims were time-barred. The court noted that XRP was initially offered to the public in 2013, meaning the three-year statute of limitations had expired before the lawsuit was filed.

The court also concluded that the 2017 distribution of XRP did not count as a new offering, and therefore did not extend the legal window for filing claims.

Appeal Rejected

Lead plaintiff Bradley Sostack filed an appeal in January 2025, seeking to overturn the lower court’s dismissal of the class action claims. This week, the Ninth Circuit Court of Appeals affirmed the lower court’s ruling, finding no substantial facts to challenge the statute of limitations.

The appeals court also rejected arguments that the 2017 XRP distribution constituted a new offering or that the “economic reality” of XRP should alter the legal timeline.

With this decision, Sostack’s federal securities claims are legally closed, cementing a full legal victory for Ripple Labs.