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Ripple has not lived his best moment lately Based on the people who sued the company, Ripple has violated federal securities laws related to the sale of XRP tokens.
Recently, a US District Judge has decided to Deny the effort to move an investor lawsuit against the company in a lower court . Judge Phyllis Hamilton of the Northern District of California has denied the election. Lawyer Ryan Coffey made a motion to postpone his case against the company after Ripple took the case to the US District Court.
Coffey stated that court cases under the Securities Act could not be removed by the state court, but the judge observed that the precedents Coffey used id did not apply to the situation and to the XRP case and to its national nature.
The Argument For Ripple
Ripple uses the national argument in other cases to shift the position of the evidence. For example, the case sought to remove the lawsuit filed by the investor Avner Greenwald in the Northern District of California instead of the Superior Court of San Mateo using the argument.
He also tried to make a motion to refer to both cases. claiming that if these two cases proceed separately, they may have to pay the crime burden twice, so combining the two cases into one would be the best alternative.
It is clear that Ripple is moving forward to put all these different cases together to reduce losses in the event that it actually has to pay and save on legal fees. The plaintiffs will have to respond to the motions before it is decided whether the company will be able to do it or not.
Other Ripple lawsuits
We have covered some other lawsuits. The company is certainly facing some problems with the intention of labeling its tokens as titles instead of utility tokens, something that could be very negative for the company and, if these individual causes continue, they can certainly be expensive.
However, the Twitter user recently pointed out that Apple suffers more than 20 Ripple lawsuits and that it's still going well, so maybe Ripple is less afraid than it looks. Curious to know how this case will develop? Follow our blog for updates on this case and many others.
A lawyer took on Twitter to offer his opinion on the Ripple Lawsuit and how it affects the crypto in general:
0 / Let's talk about @Ripple litigation and the slow journey to the answer to the question : "is #XRP a security?"
Before asking, I have no plans to discuss my opinion on this issue. I prefer to leave it in court, as I will explain here.
Thread.
– Jake Chervinsky (@jchervinsky) 14 August 2018
1 / Ripple is currently defending four cases in the California courts:
– Two cases of state in San Mateo County, brought by plaintiffs Zakinov & Oconer
– Two federal cases in the Northern District of California, brought by Coffey & GreenwaldAll four cases are of class stock shares.
– Jake Chervinsky (@jchervinsky) 14 August 2018
2 / The plaintiffs essentially support the same thing: XRP is a security and Ripple has violated state and federal law by not registering before offering, promoting and sell it to retail investors
If you want more details, read Zakinov's complaint: https: //t.co/UlJcgrUX9A
– Jake Chervinsky (@jchervinsky) 14 August 2018
3 / Some context on class actions for non-jurists: a collective action is a procedural device to resolve the legal claims for many plaintiffs at the same time (here owners of XRP) where the facts and the issues are the same for all
Yes, Dear hodler XRP, * you * are probably also a member of the class.
– Jake Chervinsky (@jchervinsky) 14 August 2018
4 / Sets of class actions and sentences are generally binding for the whole class, except for members who "refuse".
So if Ripple can solve * one * class action, it will essentially be done by arguing XRP = security issue with all private plaintiffs (excluding the SEC).
– Jake Chervinsky (@jchervinsky) 14 August 2018
5 / Can you ask me, if class actions are binding on everyone, why do four of them deal with the same thing?
Welcome to the class action business. Most (but not entirely) money: plaintiffs and lawyers who * are * the first to win their case get the greatest reward.
– Jake Chervinsky (@jchervinsky) 14 August 2018
6 / For various reasons, Ripple wants to consolidate these actions. Last week, they:
– moved to "relate" federal cases = would have combined Coffey & Greenwald into one
– asked to "coordinate" state cases = add efficiency but state and federal cases would proceed separately [19659012] – Jake Chervinsky (@jchervinsky) 14 August 2018
7 / Recently, Coffey filed a motion to request repatriation to the state court on the basis of an obscure jurisdictional problem that could bore you to death [19659012] The motion was rejected last Friday, a small victory for Ripple because they prefer to remain in a federal court. Https: //t.co/FYafU6CxkV
– Jake Chervinsky (@jchervinsky) 14 August 2018 [19659024] 8 / Otherwise, nothing too interesting has happened yet. All these cases are still very young. We will know more about it after the next case management conferences:
– Coffey, 20 September
– Oconer, 25 October
– Zakinov, 26 October
– Greenwald, 26 November– Jake Chervinsky (@jchervinsky) 14 August 2018
9 / Ripple also has deadlines for storing sensitive memories, ie an answer to the complaint or a motion of some kind:
– Greenwald, 29 August
– Zakinov, 7 September
– Coffey, 10 September
– Oconer, ???All these deadlines can be extended with court approval.
– Jake Chervinsky (@jchervinsky) 14 August, 2018
10 / I expect that Ripple will imply the motions to be rejected, eventually exposing their arguments on why XRP is not a security.
However, MTDs have a limited scope. They only challenge the "legal sufficiency" of a complaint, but must assume that all statements are in fact true.
– Jake Chervinsky (@jchervinsky) 14 August 2018
11 / If a MTD is denied, we obtain:
– an answer that admits or denies any de facto accusation
– a motion for class certification to approve the proposed class
– a motion for summary judgment requesting dismissal based on evidenceAnd then Ripple takes care of a long and expensive discovery.
– Jake Chervinsky (@jchervinsky) 14 August 2018
12 / Timing is hard to predict, but I suppose ~ 6-12 months from today to solve an MTD and ~ 12-24 months for the class certification and summary judgment (I could be far away)
If the case survives, it will be set for the trial, but practically all the classified actions are settled before reaching a jury.
– Jake Chervinsky (@jchervinsky) 14 August 2018
13 / In short, I do The California lawsuits will tell us a lot about the future of XRP anytime soon.
Of course, Ripple could get an early agreement or dismissal, but given how class actions work, I doubt it.
– Jake Chervinsky (@jchervinsky) 14 August 2018
14 / Reminder: * none * of this has anything to do with the SEC.
As I said before, the SEC does not make the law. They can only give their opinion and the courts can decide whether to agree or not. No matter what the SEC says, these cases will go on.https: //t.co/tg1aUtgULj
– Jake Chervinsky (@jchervinsky) 14 August 2018
15 / This could be one of the reasons why the SEC has not yet made payment on XRP.
The security problem is already pending in California cases. SEC can sit down and look at plaintiffs dealing with class actions to solve the problem for them; if the plaintiffs win, the SEC can move against XRP later.
– Jake Chervinsky (@jchervinsky) 14 August 2018
16 / If the plaintiffs lose, the SEC will have saved a lot of time and money.
Keep in mind that they have limited resources for space #crypto and have their hands protests for the plans of ponzi and definitive frauds. Staying calm could simply be a good resource management.
– Jake Chervinsky (@jchervinsky) 14 August 2018
17 / Of course, it is possible that the SEC will not be concerned at all with California cases & will continue (or not) in its own time.
If Ripple wins or settles in California, the SEC could file a lawsuit in New York and say the west coast was wrong. This would not be improper.
– Jake Chervinsky (@jchervinsky) 14 August 2018
18 / In any case, @Ripple is taking this very seriously. They hired a team of high-level title disputes to represent them, including a former SEC president and a former SEC executive director.
They are clearly prepared for a fight. From what I can say, it could be long
– Jake Chervinsky (@jchervinsky) 14 August 2018
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