Class-action lawsuit was filed against Ripple in May 2018 stating that “XRP is not a token, but
Plaintiff Ryan Coffey claimed in the May 2018 class action lawsuit that Ripple would breach state and federal securities laws. Coffey seeks damages on behalf of all the victims who have bought and sold Ripple . The class action lawsuit against Ripple was originally filed by law firm Taylor-Copeland in May last year, stating that plaintiff Ryan Coffey bought XRP on January 5, 650 and sold it on January 18 last year for USDT. He then exchanged it for US dollars, which was supposedly a loss of about 32 percent or $ 551.89.
As US attorney Jake Chervinsky recently announced via Twitter, “Ripple scored a small but significant victory.” Already on February 28, 2019, a hearing on the class action lawsuit against the US District Judge Phyllis Hamilton from the Northern District of California took place. He said that the case would remain with the federal court itself – which is a small victory for Ripple, as attorney Jake Chervinsky said.
Since the filing of the lawsuit, the court has made several changes – but the latest hearing revealed that the case against Ripple will remain with the federal court itself. The official document states:
[…] Interstate class actions usually involve more people, more money, and more inter-state trade involvement than any other type of lawsuit, and the Committee firmly believes that such cases are properly federal.
The lawyers of Ripple filed a motion in November last year to bring the case to federal level. This would allegedly allow Ripple to prove conclusively that the XRP token is not a US law security. As Chervisky noted, Ripple was struggling hard to get the submission to federal court.
In addition, it should be noted that both parties have 14 days to complete the proceedings as to whether the lawsuit should continue. It is also expected that the plaintiffs will file an “amended consolidated complaint” 30 days after the decision, while Ripple, as defendant, will also have 30 days to file a “request for dismissal”.
Categories: Crypto Currency