The motion which encapsulated Ripple, its subsidiary XRP II and Ripple CEO Brad Garlinghouse was dumped by district Judge PHYLLIS J. HAMILTON.
US Court Refuses to Continue with the Ripple Court Case
A district court in northern California has ruled to refuse a motion to remand against Ripple, XRP II, and CEO Brad Garlinghouse. The statement of the court Judge regarding the case was finally issued in an official court document. The final judgement was shared on Twitter on Friday 10 August.
The Court case all started on may 3,2018 when an XRP investor Ryan Coffey filed a lawsuit in a San Francisco Court. The case was against Ripple for causing him a financial loss of $552. Coffey claimed that he lost the funds while trading XRP Tokens issued and controlled by Ripple. The class action lawsuit was filed by law firm Taylor-Copeland claiming that Ripple violates state laws while selling XRP. Coffey further claimed that XRP tokens are not genuinely decentralized.
However, the Plaintiff failed to prove to the court that the presence of the securities Act issue was sufficient to bar the defendant from removing an action under the Class Action Fairness Act. In its ruling to the court stated that,
“The parties candidly admit that their research failed to turn up any case directly addressing this question and the court’s own research fared no better.”
Testing the Legitimacy of companies
It is common for an individual to file a lawsuit against companies to test their legitimacy. Though sometimes some companies suffer losses most companies defend these claims. Ripple is developing into a leading company in the cryptocurrency and blockchain space with numerous solutions. Ripple currency develops solutions that serve businesses, individuals, and government needs.
Meanwhile, a Ripple spokeswoman notes, during the time the lawsuit was filed, SEC has not decided whether XRP is a security. She stated that the company continued to believe that XRP should not be classified as a security. With the increasing lawsuit against the company, XRP has appointed the former chair of the US SEC Mary Jo White to represent them in the Coffey case.