Ripple has instructed its legal team to dismiss claims that it violated U.S. securities law by selling XRP via ICO back in 2010.
The case alleges Ripple led a scheme to raise hundreds of millions of dollars by their digital token illegally.
The class action suits allege that the defendants (Ripple) violated both the Securities Act & the California Corporations Code. The plaintiffs filed the claim are asking for payment for attorney’s fees, the costs of the suit, and punitive damages, as well as declaring the sale of XRP an unregistered securities sale.
The plaintiff did not ‘plausibly allege’ he bought the XRP during that initial offering and that none of the defendants actually sold said XRP.
Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders; and the XRP Ledger is decentralized
Ripple Legal Filing
Ripple’s filing also states the court doesn’t have to class XRP a security or currency for purposes of the motion, which rides on that assumption.
Furthermore, the accusers did not respond within the allotted timeframe of three years which should throw out the case regardless.
If they should win the plaintiff has requested all federal court fees be paid by Ripple…
What Will Happen
Lawyers representing Ripple in the lawsuit filed an application to move the case to federal level in November of last year. That would purportedly allow Ripple to prove definitively that its XRP token is not a security under U.S. law, should it win.
Added to that their consumer protection claims under Califonia law should be dismissed because that requires a securities claim.
Ripple finished by saying the complaint should be dismissed with prejudice, which would mean no further claims can be filed in the future.
The case will be heard on January the 15th 2020 and many many people will be eager to hear the outcome for peace of mind.