Federal appeals court upholds judgment for Ripple in XRP class action

The Ninth Circuit Court of Appeals upheld a lower court's dismissal of a 2019 class action lawsuit filed by Bradley Sostack against Ripple Labs. Sostack alleged that Ripple illegally sold XRP tokens as unregistered securities, violating the Securities Act of 1933, particularly citing a 2017 distribution. However, the district court initially dismissed the claims because they were barred by the three-year statute of repose, as XRP was first offered publicly in 2013 and the complaint was filed much later. The appeals court agreed, finding no material facts to challenge the statute of repose, rejecting arguments that the 2017 distribution constituted a new offering or that the "economic reality" of XRP should alter the timeline. Consequently, Ripple's legal victory was fully upheld, as Sostack's federal securities claims were deemed time-barred.

(Source：Crypto Briefing)