Jake Chervinsky, Lawyer at Kobre & Kim LLP, recently tweet about a new development for the filed class-action lawsuit made against Ripple. In the tweet he explains that the plaintiffs are claiming XRP as a security, have filed a motion to remand in federal court, asking them go back to state court.
The plaintiffs in the Ripple securities class action have filed motions to remand in federal court, asking to go back to state court (again).— Jake Chervinsky (@jchervinsky) December 8, 2018
They also say Ripple should pay their legal fees, saying the removal to federal court was "frivolous" & had "no basis in law or fact."
A couple of weeks back, the lawsuit had been removed to the Federal course as the attorneys at Ripple successfully defended the company stating:
“Plaintiffs do not allege that they lacked information about the nature of these transactions. Nevertheless, Plaintiffs claim that they were somehow injured because the Defendants were allegedly required to register XRP as a ‘security’ with the Securities & Exchange Commission (‘SEC’) but failed to do so.”
During a serious of tweets sent before this newly developed announcement, Chervinsky explained the legal situation that is being dealt by the leading blockchain fintech firm. During August, the lawyer also mentioned that Ripple is defending a total of four cases in California courts alone, two of those were in state Courts, while the other two ere being fought in the apex court. Even more so, all of these mentioned cases were based on securities.
His third tweet continued his explanation that all the allegations pointed out a common case: XRP is a security wherein Ripple violated State and Federal laws by failing to register the cryptocurrency before offering, promoting and selling it to investors.
Chervinsky proceed to speculated the most likely of scenarios, one of them being the case if the plaintiffs lose. He stated,
16/ If the plaintiffs lose, the SEC will have saved a lot of time & money.— Jake Chervinsky (@jchervinsky) August 14, 2018
Keep in mind that they have limited resources for the #crypto space, and they have their hands full prosecuting ponzi schemes and outright frauds. Staying quiet now may simply be good resource management.
Since the lawsuit against Ripple continuous to change between the State and Federal court, a decision might take some time before anything is finalized by the authorities.
Court cases can be quite tough to deal with and this one is no exception. While Ripple still continuous to grow and expand it business, cases like these may still lead towards some hefty problems for the company if they lose. It’s going to be quite interesting to see the a conclusion for these cases in the coming future.
Let us know your thoughts.