- Ripple Lawsuit Saga – No Valid Reply Yet From Ripple
- Ripple Avoiding the Question OF XRP’S Security Status
Following the lawsuit filed against Ripple by an XRP holder, a new legal filing states that Ripple’s claim that the XRP holder waited too long to file suit does not hold water. The plaintiff who goes by the name Bradley Sostack stated that Ripple’s statue of repose which is a three year period where victims can claim alleged wrongdoing does not inoculate the defendant from securities laws due to the on-going sales of XRP.
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As seen in the new filing issued on Monday, Sostack alleged Ripple’s monthly sale of XRP out of escrow contains on-going sales as acknowledged in his reply to ripple’s motion to dismiss from September. Sostack is the court-designated lead plaintiff in a long-standing legal battle with Ripple and its CEO Brad Garlinghouse, based on claims that the payments startup violated U.S. securities laws by selling XRP to the general public and promising that the token’s value would increase. The plaintiff is claiming he lost $118,100 through his XRP investment, according to an August filing.
Ripple Avoiding the Question OF XRP’S Security Status
Following the court’s precedent, Sostack stated that the defense relies on an “out-of-circuit decision” which “cannot be squared with the Supreme Court’s more recent holding that the statute of repose ‘runs from the defendant’s last culpable act (the securities offering).’”
The response went thus: “Defendants have failed to cite any case – and indeed, no court has found – that liability for multiple offerings has been barred by the statute of repose.”
The lawsuit was first filed early last summer. Sostack and his attorneys, law firms Susman Godfrey and Taylor-Copeland Law, then filed a revised class action complaint in August 2019, linking Ripple’s alleged actions to the standards set out by the U.S. Securities and Exchange Commission (SEC) in its crypto-asset outline in stating that XRP is a security.
So far, Ripple has avoided the question of whether XRP is security entirely in its response to the lawsuit. Instead, in e blockchain company was arguing that the complainant has failed to file a suit within the statute of repose and that the complainant failed to file a complaint under the law. According to legal experts, the possibility of that the issue of if Ripple is security will be resolve yet is unlikely, as the complaint alleged that Ripple’s XRP is a security. Going by the court Judgement, Ripple must reply to the new filing by December 4, with an oral argument to back it up which is projected to start by January 15.