As per the latest reports, MoneyGram, which is a prominent money transfer platform has been met with a class-action lawsuit. The sources have revealed that the lawsuit action against the company has been filed over its partnership with Ripple (XRP).
The reports surrounding the matter reveal that the claimant has imposed allegations on MoneyGram over its partnership and the statement it made in regards to Ripple (XRP).
The money transfer company has been alleged by the claimant for making misleading and false statements. The false statements being referred to here are about the company’s interaction and partnership with Ripple (XRP). Furthermore, the company has also been accused of making misleading claims about the securities “XRP” offered by the blockchain company.
According to the Rosen Law Firm, the class action lawsuit against MoneyGram has already been filed by the plaintiff. The parties involved in the filing of the lawsuit also include the investors who ended up purchasing the XRP securities using MoneyGram.
It has been alleged by the XRP security purchasers that they had carried out their XRP purchasing activities between June 17 of 2019 and February 22 of 2021.
Some of the major points that the claimants mentioned in their statements suggest that XRP was unregistered by the SEC. The claimants stated that MoneyGram continued dealing in XRP tokens although it knew the asset was not at all registered or approved.
The claimants stated that in order for Ripple to offer XRP and MoneyGram to adopt XRP, XRP had to be regulated and approved by the Securities and Exchange Commission. Unfortunately, Ripple had never gotten the XRP securities registered and approved by the regulators.
The claimants revealed that MoneyGram was always aware of the fact that the Ripple securities “XRP” were not registered and still it continued supporting XRP and ended up facing a huge problem.
Although the case between Ripple and the Securities and Exchange Commission is still ongoing, things may turn bad for MoneyGram. Before the lawsuit action filed by the SEC against Ripple (XRP), Ripple was one of the major clients at MoneyGram.
The company had been making a lot of profits and revenues through all the transaction fees it was collecting through Ripple whenever a transaction was initiated to or from the MoneyGram platform.
If the SEC ends up winning the lawsuit against Ripple, MoneyGram would end up losing a huge partner that was responsible for generating huge profits and revenues for the money transferring platforms.
It is also being speculated that the plaintiffs affected by the misleading statements would be eligible for compensations. If that happens then the situation would become even worse for the platform.
The partnership between the two firms was made back in June of 2019 when it was announced that Ripple had made an initial investment of $30 million at MoneyGram as part of the deal.