On 8th December, Jake Chervinsky, Lawyer at Kobre & Kim LLP, tweeted about a development in the previously filed class-action lawsuit against Ripple. Here, he informed his followers that the plaintiffs claiming XRP as a security, have filed a motion to remand in federal court, asking to go back to state court. He added:
“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 few weeks back, the lawsuit was removed to the Federal Court as the attorneys at Ripple 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.”
In a series of previous tweets, Chervinsky explained in detail, the legal situation that is being faced by the leading blockchain fintech firm. In August, the lawyer mentioned that Ripple is defending four cases in California courts – two of them were in state courts [San Mateo County, filed by Zakinov and Oconer] while the other two were being fought in the apex court [Northern District of California, filed by Coffey & Greenwald]. Furthermore, all of the mentioned cases are based on securities.
He continued the explanation in his third tweet, stating that all the allegations pointed to a common case: XRP is a security wherein Ripple violated State and Federal law by failing to register the digital asset before offering, promoting and selling it to retail investors.
Chervinsky also speculated the expected scenarios, one of them being the case if the plaintiffs lose. Regarding this, he wrote:
“If the plaintiffs lose, the SEC will have saved a lot of time & money. 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.”
As the combined Ripple lawsuit keeps dodging between the State and Federal Court, a decision on the same is yet to be heard by the authorities.
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