According to a recent ruling, the securities lawsuit against Ripple will stay in federal court, lawyer Jake Chervinsky announced in a recent tweet on 1 March 2019.
Chervinsky maintained that the plaintiffs’ motions to remand have been denied by the court, therefore, the case will stay in federal court. He added that although it is a minor victory, it can be meaningful in the long run.
The ruling declared that the class action suit against Ripple CEO Brad Garlinghouse, Ripple Labs and its subsidiary XRP II for allegedly selling unregistered securities should stay in federal court
Moreover, the court’s previous explanation regarding the lawsuit has also been mentioned in the ruling. According to the previous explanation, the court noted that as typically more people, more money, and more interstate commerce ramifications are involved in interstate class actions, such cases belong to the federal court.
Furthermore, 14 days have been granted to the parties to conduct a meeting and determine the procedures for litigation. The plaintiffs have been ordered to file an amended consolidated complaint (a revision of original complaint), within 30 days.
In November 2018, an application to move the case to federal court was filed by Ripple’s lawyers. If Ripple manages to prove that its XRP token does not come under US law as a security, it will win the case.
Law firm Taylor-Copeland filed the said class-action lawsuit back in May 2018. They noted that Ryan Coffey (plaintiff) sustained a loss of nearly 32% ($551.89) between Jan. 5 and Jan. 18 due to XRP trading. They claimed that the Securities Act and the California Corporations Code was breached by the defendants.
Follow BitcoinNews.com on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: bitcoinnews.com
