Ripple Labs, the technology company behind the cryptocurrency XRP, has been hit by another class-action lawsuit filed on behalf of Florida residents led by Tyler Tomei.

According to what is mentioned in lawsuit, Prosecutors accuse Ripple of violating Florida Securities Act and demand investor protection by offering XRP to retail and individual investors without any restrictions.

The lawsuit stated an explicit accusation to Ripple that, due to its inability to bear the expenses of its business, it was forced to sell the digital currency XRP as widely as possible while controlling supply and liquidity.

The text of the lawsuit reads as follows:

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The vast majority of Ripple’s revenue came from XRP sales (over $1 billion), and Ripple relied on these sales to fund its operations.

The lawsuit also identifies Ripple CEO Brad Garlinghouse as an individual defendant. The lawsuit asserts that he sold $150 million worth of XRP from April 2017 through December 2019 while manipulating the digital currency XRP. Quoting from the lawsuit in this regard:

At various times between at least April 2017 and December 2019, Garlinghouse temporarily halted XRP sales because the market price of XRP was dropping, in an effort to avoid a drop in the market price of XRP.

Garlinghouse has made a fortune on his ongoing XRP sales despite saying he will not sell XRP on CNBC.

He also previously predicted that the market value of Ripple would reach “trillions of dollars” in an interview with “Bloomberg”, where the lawsuit indicated that in the text:

Garlinghouse himself has been a particularly consistent spokesperson for Ripple’s efforts to market XRP as an investment that investors can benefit from.

While he was selling millions of XRP.

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Garlinghouse repeatedly told investors that he had invested in XRP, and that he was bullish about investing in it.

Legal problems pile up on Ripple:

Ripple has been the subject of a similar class action lawsuit brought by lead plaintiff Bradley Sostack in May 2018.

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The case lasted for about three years.

The legal problems that Ripple is facing have become much worse, especially after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple last December.

We have previously discussed in Bitcoin Arabs a lawsuit led by the investment company “Tetragon”, which seeks to redeem its shares in Ripple after leading the Series C funding round in December 2019.

It appears that some of these lawsuits have taken advantage of the legal problems and lawsuit that Ripple is facing before the SEC.

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