Ripple Lawsuit: Settlement This Month?

Experts have said that a Ripple Lawsuit settlement could happen this month. Here’s why that matters to XRP (CRYPTO:XRP) holders.

We are rapidly approaching a key date in the Ripple Labs lawsuit.

According to legal experts, a settlement may be reached as soon as the end of April. The developers of XRP (CRYPTO: XRP) are widely thought to have the upper hand in a potential trial, which has led some to speculate that the SEC may be willing to settle.

Although no dates have been set in stone, there are several reasons to think that a settlement may be coming as soon as this month. In this article I will explore a few reasons why we might get a settlement soon, and what a potential settlement would mean for XRP holders.

gaming, tech

Image source: Getty Images

Lawyer cautiously predicts settlement in April

There are two main reasons why some people think a settlement to the XRP lawsuit could come this month:

  1. A lawyer familiar with these matters cautiously opined that one could be coming. The lawyer in question, Jeremy Hogan, is not working on the case, but is following it closely. Hogan did say that his opinion was just his “best guess,” but being a lawyer, his guess may have some weight.
  2. The beginning of the trial is rapidly approaching. According to courtroom filings, the SEC vs Ripple lawsuit will go to trial in August if no settlement is reached. Therefore, if a settlement occurs at all, it is likely to happen soon.

What kind of settlement would we be looking at?

In its filing, the SEC sought to have Ripple pay out US$1.3 billion plus interest — that is, the proceeds from the XRP coin offering plus a bit more. If the two parties settle, then they will likely agree on an amount much smaller than that. Settlements usually involve some level of compromise by both sides.

Additionally, many experts think that Ripple is winning in the pre-trial hearings that are now ongoing. They often cite Ripple’s wins on depositions and witnesses as evidence that a trial would likely go its way. Given that Ripple has this “leverage” over the SEC, it would seem likely that the two parties would settle for a relatively small amount.

What does all this mean for XRP holders?

The information we’ve looked at so far suggests that Ripple Labs is not likely to be destroyed by the lawsuit the SEC brought against it. Ripple Labs is working on a number of projects to improve the user experience. It’s busy recruiting banks to use its payment network, and is constantly working to improve its blockchain. Were the SEC to win, then all of this would be called into question. Having to pay out US$1.3 billion would be an enormous resource drain on Ripple Labs, and might interfere with its ability to continue working for the XRP community. So, a win would be bullish for token holders.

Foolish takeaway

The Ripple Lawsuit has been a long and drawn out saga. Between motions, media confrontations, and internet rumours, we’ve heard it all. Potentially, this thing could last all the way to the end of November. But there is a decent chance the whole thing will be over this month.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

A plant grows from coins.
Stocks for Beginners

Brazil’s Election Could Move Commodity Markets: I’d Watch This Canadian Miner

Lundin’s Brazilian operations create a direct link between the election, currency movements and mine costs.

Read more Ā»

eat food
Dividend Stocks

Down 48%, Premium Brands Now Yields 4.8%: My Plan for Buying It

Premium Brands is benefiting from its focus on higher growth segments, which is boosting earnings and returns.

Read more Ā»

The sun sets behind a power source
Dividend Stocks

I’d Hold Fortis for Its 4% to 6% Dividend Growth Target Through 2030

Fortis (TSX:FTS) looks like the ultimate dividend growth stock to hold through 2030 for its relative steadiness.

Read more Ā»

Canadian dollars in a magnifying glass
Dividend Stocks

Canada’s Banking Regulator Watches Insurers Too: Is Manulife’s Dividend Still Safe?

Manulife’s dividend currently passes both an earnings-coverage test and a regulatory-capital test.

Read more Ā»

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, October 8

Rebounding crude oil prices could support TSX energy stocks today, but falling silver and copper prices, renewed Middle East tensions,…

Read more Ā»

people sit in two wooden beach chairs facing the Caribbean ocean holding drinks and making a toast
Dividend Stocks

How Much Should Canadians Have Saved by 55? Here’s a More Useful Number

A retirement target based on future spending can tell Canadians far more than a generic multiple of their current salary.

Read more Ā»

ETFs can contain investments such as stocks
Investing

A 10% Dividend Stock That Pays Out Monthly, Like a Pension You Build Yourself

The Hamilton Enhanced Canadian Covered Call ETF (TSX:HDIV) looks like a tactile passive income play worth considering for risk-taking investors…

Read more Ā»

dividends can compound over time
Dividend Stocks

Higher Bond Yields Are Back: Check This Number Before Buying Any Dividend Stock

A higher dividend yield means less when government bonds are suddenly paying nearly 4%.

Read more Ā»