MoneyGram is a partner of Ripple and has recently received a lawsuit that alleges that the company had issued false statements and was unable to release the status of XRP being unlicensed security.
MoneyGram International is a payments firm that has been sued for the reason that they made false comments regarding the partnership with Ripple and the XRP cryptocurrency.
Allegations Of Misleading Statements Against MoneyGram
The lawsuit of class action had been filed on the 1st of March 2021 in California and submitted by investors who had bought securities from 17th June 2019 till the 22nd February 2021 from MoneyGram.
The rights of legal practice of investors across the globe claim that the company had made fraudulent comments about their collaboration with the Ripple Labs as well as the status of the crypto XRP being security.
A particular post had specified that the partnership between the 2 companies in 2019 June was strategic in nature since MoneyGram had used the xRapid product of Ripple in order to leverage XRP for the settlement of foreign exchange which was a part of the process of cross-border payments.
On the other hand on 23rd December 2020, the firm clarified that they are not dependent on the xRapid service of Ripple for their foreign exchange transaction requirements that were rebranded for the purpose of ODL or On-Demand Liquidity in 2019.
As a result, they suspended their collaboration with Ripple during February 2020 following the lawsuit against Ripple securities violation by the Securities & Exchange Commission of the US in 2020 December.
The agreement of the 2 firms was likely to expire in the year 2023 after a fintech company of San Francisco agreed on a $50 million investment in MoneyGram.