Major money transfer system MoneyGram encounters a lawsuit that claims it didn't inform users about XRP's class as unlisted security. The initiator of the legal proceedings was Rosen Law Firm which introduced a representative action on March 1.
The suit was in the name of depositors that traded securities from MoneyGram during June 2019 and February 2021. The Rosen Law Firm serves people that suffered from stock fraud and corporate misconduct. The organization reported that MoneyGram released untrue announcements related to its cooperation with Ripple and the rank of XRP.
In June 2019 MoneyGram built a strategic alliance with Ripple. On December 23 the firm explained that although it used the xRapid product it didn't serve for immediate sends. The setting was renamed On-Demand-Liquidity in 2019 for its global market purchase purposes.
MoneyGram also noted it's not being a side of SEC trial. In December 2020 the SEC started judicial proceedings towards Ripple Labs. In February the transfer provider halted its cooperation with Ripple.