The ongoing securities lawsuit against crypto payment giant Ripple will stay in the federal court after the recent ruling according to a Tweet by the lawyer Jake Chervinsky posted yesterday so we are about to find out more about this in our crypto news below.
Chervinsky wrote in the post:
“The Court has denied the plaintiffs’ motions to remand. This means the case stays in federal court, a minor but meaningful victory for Ripple.’’
The United States District Judge Phyllis J. Hamilton of the Northern District of California has ordered that the lawsuit against Ripple Labs and the CEO Brad Garlinghouse for selling unregistered securities must stay in federal court.
The parties were given two weeks to conduct a meeting and figure it out how the litigation should proceed. After 30 days of the order expiration, the plaintiffs can file a revision of the original complaint.
Lawyers, who are representing Ripple in the lawsuit, filed an application to move the case to federal level back in November 2018. This could have allowed ripple to prove whether its XRP token is not a security under US laws.
The class-action lawsuit against Ripple was filed by law firm Taylor-Copeland in May 2018 after the plaintiff Ryan Coffey purchased 650 XRP and sold it later on January 18. He exchanged the XRP later for US dollars but suffered a loss of around 32 percent.
The class action lawsuit states that the defendants violated the Securities Act and the California Corporations Code and this is why the plaintiffs are asking for payment for the legal fees, lawsuit costs, and punitive damages.
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