Ripple Triumphant In Latest US Securities Class Action
A judge has decided to rule out an ongoing class action lawsuit, which is specifically aimed at Ripple. As far as the decision is concerned, it has to remain in federal court. This simply gives the company a slight leverage moving forward.
Minor Yet Meaningful Victory
The U.S. District Judge of the Northern District of California named Phyllis Hamilton ruled recently that a class action lawsuit filed against the payments firm – including its affiliated individuals and subsidiaries – should not be transferred all the way back to the lower courts. The decision came after lawyers for the aforementioned company first moved directly to district court in 2018.
According to Kobre Kim lawyer named Jake Chervinsky, this might be a minor victory for the entire Ripple organization. However, as far as everyone in the company is concerned, it is definitely a victorious one.
A partner at Anderson Kill named Stephen Palley said in a previous report that, in most cases, corporate defendants are likely to feel more comfortable, especially when cases are with federal courts. Palley explained that this is because lower court juries and/or judges tend to locally select and, as a result, the chances of being sympathetic to plaintiffs are high.
Chervinsky agreed to the statement Palley provided. The attorney even noted that Ripple indeed fought hard in order for the case to be brought at a federal court level.
The case involving the payments company centers on the digital currency XRP. The plaintiffs, in particular, allege that the company issued the crypto as an unregistered securities offering. But as far as the firm is concerned, these claims have no substantial value; hence, false.
The subsidiary of XRP II called Ripple Labs and its CEO Brad Garlinghouse are named defendants in the case. The official report states that there are other individuals involved in the ongoing case.
The Long Term
Despite the company’s win on the recent jurisdictional phase, the case is expected not to really go to trial for years. This, according to Chervinsky, is possible if the case really goes to trial at all. Basically, the lawsuit is claimed to be moving past a handful of other stages, with a possibility of motion to dismiss being the first one.
Ripple will reportedly argue that the complaint has failed to state a claim that is legally cognizable as far as the law is concerned. And this could likely be the description even if one has to assume that the claims are true.