The Ripple community cannot explain the motivation behind a class action lawsuit archived Florida man Tyler Toomey against Ripple Labs and Ripple CEO Brad Garlinghouse on a loss of $ 48.56.
In November 2020, Toomey purchased 135 XRP tokens for $ 0.724 each for a total value of $ 97.80. After news of another lawsuit against Ripple in December of that year, Toomey sold his investment for $ 49.24, down nearly 50%. He has now started a class action that costs eight times more filing fees than the loss he claims to have suffered.
According to the Florida Middle District website where the lawsuit was filed, the cost of filing a civil suit is $ 402.
Add to the general strangeness of the matter the amount demanded by Toomey is $ 5,000,001,000 and the Magistrate presiding over the case shares his unusual last name – Magistrate Judge Joel B. Toomey.
The filing states that the class action is on behalf of Toomey (the plaintiff, not the magistrate), “and all others who are similarly opposed to defendants Ripple Labs,” so it is possible that his motivation is to allow other investors to propose to take similar action.
Don’t forget the new #xrp lawsuit is a class action, so others are expected to join the lawsuit.
I think that $ 50 guy is just clickbait.
– the magistrate hearing the case appears to be related to the plaintiff
– $ 5,000,001,000 is being soughthttps://t.co/uoLujqO43s
– Howard Moon (@XrpHoward) January 27, 2021
Toomey is also seeking “injunctive relief” because of the amount of XRP held by defendants, the filing alleging that “they can continue to make money while creating significant risk for investors.”
The Ripple community doesn’t seem to know what to make of the case, and some do offended while others consider it a joke. A Twitter user offered Toomey $ 200 in XRP to drop the lawsuit.
New Jersey attorney Jess Hynes suggested the law is guilty of making such malarky possible.
“This stuff will keep happening and you can blame Congress and the SEC for it. @RepMaxineWaters declined to do her job last session. Let’s hope she does. “
Ripple is currently trading at $ 0.25, down 4% in a day, suggesting few investors are taking this lawsuit to heart.