The case, which is being heard in the US state of California, is led by lead plaintiff Bradley Sostack, with three lawsuits (Zakinov, Oconer, and Greenwald) consolidated into one. The plaintiffs accuse Ripple of selling XRP as an unregistered security and seek damages for losses suffered from the sale and alleged promises by Ripple. In addition, the plaintiffs are asking the court to also classify XRP as a security.
A New Player In The Ripple Vs. Zakinov Case
Attorney John E. Deaton, who is already involved with a respective amicus brief in the Ripple vs. SEC and LBRY vs. SEC cases, is now getting involved in this case as well. As prominent criminal defense attorney James Filan writes in a series of tweets , Deaton is filing an amicus brief in Zakinov vs. Ripple.
Filan writes that the proposed class would include XRP holders around the world, including the 75,890 holders in the SEC case who have joined Ripple’s arguments and disagree with the plaintiffs in Zakinov, saying that XRP is not a security.
Moreover, the proposed class action is not limited to direct sales by Ripple, but extends to all sales of XRP, including secondary sales and international sales in countries where the token has already been classified as not a security.
Deaton argues in his motion that the court should not certify the class because of these conflicts and because there are only a small number of holders who claim that XRP is an unregistered security, while vastly more token holders worldwide claim that it is not.
JUST ADDED to our Document Library: Order Granting @JohnEDeaton1 Admission Pro Hac Vice Representing #XRPHolders in US District Court for Northern District of CA in "In Re Ripple Labs Inc Litigation" (Zakinov v. @Ripple )