Ripple Labs managed to coordinate all legal actions by claiming that XRP is a "security" complex "cause" that states that everyone is a material part of the same topic.
After being sued by multiple investors in the past claiming XRP token as headlines, San Francisco startup blockchain Ripple finally gets hope and relief. Ripple Labs has worked to address several collective lawsuits against it. The company is also trying to coordinate a single response to similar causes.
On Wednesday, 29 August, a lawsuit filed by an investor David Oconer at the California Superior Court was considered a "complex litigation" which means that it will now be coordinated with other similar causes. So David's case against Ripple will be considered similar to another California case, presented by investor Vladi Zakino.
The California court rules assume that the case concerns "requests for securities or investment losses involving many parties", to be regarded as a "complex litigation". Based on this new status, the court asks the judges to supervise the actions in order to prevent duplication of effort and to eliminate the possibility of different results in different cases, but of a similar nature.
At the beginning of this month, Ripple Labs had archived the coordinates that the lawsuits filed by Zakinov and Oconer concern "all are material part of the same subject" and involve "all or substantially all the same subjects". However, a bad news for Ripple Labs is that Oconer's lawsuit was assigned to Judge Marie Weiner that the startup company had previously disqualified from chairing the Zakinov case. Not sure if Ripple will take a similar position this time too.
Ripple issued a clarification on XRP
After several lawsuits brought against the company that declared XRP as a security, the startup blockchain has issued a clarification on how the brand differs from its XRP digital tokens. The US Securities and Exchange Commission has reviewed all investor requests. and still remains uncertain about the status of XRP.
Ripple Labs currently holds 60 billion XRP tokens with nearly $ 55 billion required in the effort. Investors have also accused the company of having a high level of centralization, while several experts have said that the company tries to artificially inflate the price of these tokens to finance its business. However, CEO Brad Garlinghouse insists that digital money is not a security. The Garlinghouse sites explain how XRP and Ripple are different:
"If Ripple were to close tomorrow, the XRP register will continue to operate."
"If you buy XRP, you do not buy Ripple shares." Similarly, "Saudi Arabia has a lot of oil, but it does not have oil control."
"The XRP is solving a problem.There is no security in a utility. "
This year, Ripple Labs brought several giant banking partners aboard its Ripple ecosystem from the United Arab Emirates, Asia and some parts of the world. # 39; Europe. However, it should be noted that although they use Ripple's blockchain technology for instant, low-cost cross-border settlements, they are not all part of its xRapid ecosystem that uses XRP tokens.