Lawsuit Against Ripple Officially Dropped

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lawsuit against Ripple

The lawsuit against Ripple that was filed back in May was finally dropped by the US Northern District of California court.

Lawsuit Against Ripple Denied

Ripple Labs Inc. has been a subject of multiple controversies, especially when it comes to its cryptocurrency, also called Ripple. The coin has been accused of centralization, and the company even received a lawsuit that stated that they used illegal and dishonest tactics to trick the investors and control the coin’s price.

While many who support and make these claims have stopped at bashing Ripple on social networks, there were also those who took action against the company. Back in May of this year, an XRP investor by the name of Ryan Coffey filed a lawsuit against Ripple after suffering losses instead of gains on his investment. Coffey led an entire group of displeased investors and has filed a lawsuit against Ripple Labs on May 3rd of this year.

He issued ‘Order Denying Motion to Remand’, which ensured that the case would remain in the lower courts of California, instead of advancing to Federal levels. Due to an apparently bad investment, Coffey suffered losses when Ripple price went down. After that, he demanded compensation for his financial loss, and when he did not receive it, he accused Ripple Labs of manipulating the price of XRP in order to make profits and damage its investors.

According to him, Ripple promoted its crypto through the media, while at the same time, it used the media to make prices go up or down. Simultaneously, he accused XRP of being a security, and Ripple Labs of ignoring the California Corporations Code regarding the securities laws.

Additionally, the lawsuit also accused Brad Garlinghouse, Ripple’s CEO, directly. Garlinghouse was accused of misleading investors and falsely explaining how the products of the company are being used. Coffey finally accused the XRP of not being decentralized and violating federal laws regarding securities.

Ripple Still Not in the Clear

After several months, the lawsuit against Ripple was finally denied by the court that released the following statement:

Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court hereby DENIES plaintiff’s motion.

While this is generally a good news for Ripple, the company is still not in the clear. Two other lawsuits were filed against Ripple, but these two were brought to the attention of a federal court. As for Coffey and his legal representatives, the Rosen Law Firm, it is possible that they wanted to avoid the federal court on purpose.

According to some theories, this decision might have come as a method of preventing Ripple from benefiting in case of its victory in court. If Ripple was to win in a federal court, the company and its coin would have received a lot more positive attention.

8 COMMENTS

  1. One day it will be proven that Ripple labs organized a ponzi scheme with its XRP and the 60% XRP (60billions they control ) are used to pay banks for fake partnerships

  2. Xrp And the ripple products are spreading all over the globe. Used by banks, payment corps,and the list goes on, It has a purpose and fixes a decades old problem with banking and sending of money. As far as the product it is one of the best I have seen by far!! And with some more effort one day your money and everyone else will flow through the ripple system one way or another. What I see and hear is a whole lot of people talking trash, this probably due to ignorance and the fear of change!! It is here and it is the now and future. One suit down and the remaining left, they will all be thrown out of the court system just on the merits alone. If you invest in something it is always good to know what you are investing in. Plain and simple! And if you dont know what you are doing and lose your funds, Well perhaps one should have not did it in the first place And to start a law suit over a few hundred dollors trying to get your money back is the most absurd thing I have ever heard. Sounds like a bunch of fools looking for a score!! Progress scares most people!!!.

  3. Sorting and sifting through information. In a discussion group I heard that the law suit was NOT DENIED but the courts denied him keeping the law suit in lower courts. As I understand the law suit will still proceed in Federal Court. Can you clarify? Thanks.

  4. 1.) No the lawsuit was not dropped, it will still be heard in Federal Court. The motion that was denied was for it to be heard in STATE court. The decision was based on 2 key factors
    a.) The amount of money involved in the Class Action suit is too large for the state to rule on.
    b.) The plantifs in the Class action are too spread across the US for this to be decided solely by
    California courts. A subtle but important point considering the Silver Hills Precedent.
    2.) Why do you have a ripple logo on that coin? XRP has its own symbol and is the coin in question. Putting the Triskelion on the coin only further conflates and confuses those who struggle to keep Ripple (A software company) seperate from XRP (A digital Asset on the XRP Ledger).

    Thanks for your attention.

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