Ripple partnerships are bearing fruits for the other companies now and not in a good manner. A law firm has sued MoneyGram for being part of the Ripple team. This happened back on March 1st in a major class-action lawsuit.
The global investor rights-focused Rosen alleges that MoneyGram engaged in securities fraud. In fact, MoneyGram failed to disclose to the investors that XRP is an unregistered security. Therefore, the company is liable to lose profits, should the SEC decides to do so against Ripple.
It must be noted MoneyGram profits have been propped up by Ripple deal. Now, the investors who were allegedly misled and provided false information by the MoneyGram can take action because they didn’t have the complete picture.
Rosen Wants >$100K+ MoneyGram Investors To Come Forward
Rosen’s class action law suit has requested all investors with over $100K investment to come forward. The specified class period is from Jun 17 2019 to Feb 22 2021, the same time period when the partnership occurred.
Ripple has provided major investments to MoneyGram for using and promoting it’s blockchain services for cross border remittances and has paid the latter with XRP tokens.
However, after the recent SEC case, MoneyGram was quick to distance itself from Ripple. The former company stated that they never used the products. It also halted trading on its platforms.