Class Action Lawsuit Against MoneyGram

A class action lawsuit was filed against Ripple's giant partner, who went through a difficult process due to his lawsuit with the SEC.

A class action lawsuit was filed against MoneyGram, a US-based company that transfers money between countries. The misleading policy of its partnership with Ripple Labs was cited as the reason for the lawsuit. The process of the lawsuit filed on behalf of investors who bought securities from MoneyGram between June 2019 and February 2021 officially started yesterday. MoneyGram, which suspended its partnership with Ripple following the lawsuit filed by the SEC, allegedly made fraudulent statements about its partnership with Ripple Labs and the status of XRP as a security, according to global investor rights rules. According to the strategic partnership between the two companies in June 2019, MoneyGram used Ripple's xRapid product and made a deal using XRP as part of the cross-border payment process. However, the company made a statement on December 23. In this statement, attention was drawn to the fact that Ripple is not dependent on its service, formerly xRapid, and the new name is Liquidity on Demand (ODL) in cross-border exchange transactions, and said, “MoneyGram does not use the ODL platform or RippleNet for the transfers of client funds and is not a party to the SEC case.” Law firm Rosen, who filed the case on behalf of clients, argues that MoneyGram did not explicitly say that XRP was viewed by the SEC as an unregistered and illegal security. Rosen also states that if the SEC obliges Ripple to enforce securities laws, Moneygram may miss out on the serious gains needed for its financial viability. The year 2023 was pointed as the ending date of the partnership between the two companies. In addition, Ripple had made an agreement with Moneygram to invest $ 50 million. On the other hand, Ripple was also paying MoneyGram in return for using its platform. Last year, MoneyGram received $ 38 million in payments from Ripple.