Ripple has secured another important legal victory in the United States, after a federal appeals court officially dismissed a long-running XRP investor lawsuit.
On January 27, 2026, the United States Court of Appeals for the Ninth Circuit affirmed a lower court ruling in Sostack v. Ripple Labs, shutting down class-action claims that alleged XRP was sold as an unregistered security.
Case Dismissed for Being Filed Too Late
The court ruled that the lawsuit was time-barred under the Securities Act of 1933. Judges said XRP was offered to the public as early as 2013, which started the legal clock. Under the law, investors had three years to file claims.
The lawsuit, however, was not filed until 2018, with lead plaintiff Bradley Sostack formally joining in 2019, well after the deadline had expired.
Because of this, the court said the claims could not proceed, regardless of their arguments.
Court Rejects “New Offering” Argument
Plaintiffs argued that Ripple’s 2017 XRP releases created a new securities offering, restarting the legal clock. The appeals court rejected that claim.
Judges said XRP did not change in nature between 2013 and 2017. It remained the same digital asset, fully interchangeable and fungible, meaning later sales did not qualify as a new or separate securities offering.
“The nature of XRP did not change,” the court stated, adding that existing securities law does not support redefining later sales as a fresh investment contract.
Important Clarification: Not the SEC Case
This lawsuit was not connected to the SEC’s enforcement action against Ripple. It was a separate investor-led class action, and the ruling does not directly affect the SEC case.
However, legal analysts say the decision strengthens Ripple’s position, especially around secondary market XRP sales and statute-of-limit arguments.
What This Means for Ripple and XRP
While the ruling is labeled “not for publication” and does not set binding precedent, it permanently closes this case and removes another legal overhang for Ripple Labs and XRP.
The decision also reinforces the view that XRP secondary market trades are not automatically securities offerings, a point Ripple has long argued.
Despite the positive court ruling, XRP’s price remains in the red and has shown little movement. XRP is currently trading around $1.90, down 0.11% over the past 24 hours.
One trader summed up the market reaction, saying that if any other altcoin had received similar news, it would have surged sharply, but XRP seems to attract a reaction of “it’s okay, it’s nothing.”
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