In the hearing of the appeal for dismissal of the lawsuit against Ripple, the District Judge in California has ruled in favor of the plaintiffs.
Vladi Zakinov’s filled the consolidated class action lawsuit with Bradley Sostack identified as the lead plaintiff, last year in August 2019. The counsel for the plaintiff are James Taylor-Copeland and Oleg Elkhunovhich.
As reported earlier on CoinGape, the defendants tried to avoid the case on technicalities of the timeline of filing the case (greater than 3 years). However, the court ruled yesterday that the securities claim in question is not invalidated under federal law.
While the case goes back to investments made before 2015, the public revelation of Ripple selling XRP lots was made until August 2016.
The defendants of the case have been recognized as Ripple Inc, XRP II Subsidiary and Brad Garlinghouse , the CEO of Ripple. They are represented by their team counsel team including, Damien Marshall, Kathleen Hartnett, and Menno Goedman.
Charges Filed by Plaintiff against Ripple ( Source )
In a list of claim, the plaintiff alleges that defendants have mislead the investors about the nature of XRP as a non-security. Whereas, it has been majorly responsible for the sale of digital asset to the public.
Plaintiff alleges numerous purported mis-statements by defendants concerning
XRP, its value, and its status as a non-security
Jake Chervinsky , a crypto analyst and legal commentator tweeted ,
There’s a lot going on here, but overall it’s a victory for the plaintiffs. The securities claims survive. XRP stays in the crosshairs.
Furthermore, since securities and commodities are interchangeable, the timelines of the case are important when imposing factors for implementation of securities law. Hence, it is highly probable that XRP is identified as a security for the discussions of the case.
Nevertheless, the details of the matter and the precedence it sets will determine the conditions for classifying cryptocurrencies as a security or a non-security.
Do you think other cryptocurrencies are likely to face similar lawsuits? Please share your views with us.