The legal battle involving Ripple Labs has taken another turn as lead plaintiff Bradley Sostack has filed an appeal against a recent district court ruling. Representing the class plaintiffs, Sostack has challenged the $210,591.52 in costs taxed against them in December 2024.
The appeal, submitted to the U.S. Court of Appeals for the Ninth Circuit, targets the court’s decision to award these costs to Ripple Labs following their summary judgment victory.
The initial ruling granted Ripple, XRP II, and CEO Brad Garlinghouse a win against allegations that included unregistered securities sales, violations of California securities laws, and control person liabilities.
Following the ruling, Ripple filed a detailed bill of costs, supported by a declaration from Litigation Director Ana Guardado and 65 exhibits that outlined legal expenses and other costs incurred during the lengthy trial. These costs reflected the significant resources Ripple devoted to defending the case.
Also Read: Attorney Criticizes the New Amicus Brief in the Ripple vs. SEC Lawsuit
Class plaintiffs objected to Ripple’s bill of costs, arguing that the amount was excessive, and requested the court either deny or significantly reduce the charges. Despite their objections, the district court ruled in favor of Ripple, taxing the full amount of over $210,000 against the plaintiffs.
This led Sostack and his legal team to escalate the matter to the Ninth Circuit Court, appealing the costs and several related rulings from the district court proceedings.
Ripple’s Legal Challenges and Regulatory Developments
The lawsuit has officially concluded at the district court level, with all claims resolved and no pending issues left to delay the judgment. This marks the end of a high-profile legal battle that has spanned several years and is closely followed by the cryptocurrency community.
The case was significant in its allegations surrounding Ripple’s sale of XRP tokens, which were claimed to constitute unregistered securities.
At the same time, the legal environment for cryptocurrency companies is evolving as reports suggest that the current administration plans to reduce litigation against crypto firms and establish a more transparent regulatory framework. This shift could have significant implications for companies like Ripple and others operating in the digital asset space.
Ripple vs. SEC: The Bigger Picture
Separately, Ripple remains embroiled in a lawsuit with the U.S. Securities and Exchange Commission (SEC), a case that continues to impact the cryptocurrency market. The SEC has alleged that Ripple’s XRP token sales violated securities laws, a claim Ripple denies.
Speculation about a potential settlement or resolution of the case has caused XRP’s market price fluctuations. Investors are optimistic as the SEC holds discussions under its new leadership that could influence the lawsuit’s direction.
Experts have offered differing predictions about the case’s outcome, with some former SEC attorneys suggesting that the commission may refrain from pursuing further appeals, while others anticipate a resolution in the coming months. A favorable decision for Ripple could set a precedent for regulating digital assets in the United States.
Conclusion
The appeal over taxed costs adds another layer to Ripple’s long-running legal saga, with significant financial stakes and broader regulatory implications likely to influence the cryptocurrency industry’s future.
As the Ripple-SEC lawsuit progresses and regulatory clarity develops, the legal landscape for digital assets could experience significant shifts in the coming months.
Also Read: Settlement or Dismissal Expected in Ripple Lawsuit Soon, Former Exec Says, See When
