Ripple Labs, the developer of XRP cryptocurrencies once again received a representative action suit or ‘class action’ from one of the well-known buyers, Tyler Toomey.
Ripple is accused of violating the Florida Securities and Investor Protection Act by offering XRP to retail investors without imposing restrictions.
In the suit, it was also mentioned that Ripple's difficulty in incurring the firm's expenses forced them to sell as many tokens as possible by controlling the supply and liquidity of the assets.
"Most of Ripple's revenue is from XRP sales of over $ 1 billion and is used to finance the firm's entire operations."
Ripple CEO Brad Garlinghouse was named as the defendant, asserting the individual had sold a sum of XRP worth around $ 150 million from April 2017 to December 2019, including manipulating the token performance.
"Several times during April 2017 and December 2019, Garlinghouse has stopped selling XRP due to the depreciation of the cryptocurrency market, aimed at preventing the XRP market price decline."
Toomey as the plaintiff also argues, the defendants still have a certain amount of XRP that they can monetize as well as invite huge risk among investors.
This is the third time Ripple has been summoned, starting with the Securities and Exchange Commission (SEC) followed by the United Kingdom (UK) asset management firm, Tetragon Financial Group LTD.
At the time of writing, XRP is trading at $ 0.26, down 2.93% for a period of 24 hours.
