A legal battle between Ripple and its investors is moving into a new stage.
The defendants are claiming that the lawsuit fulfills the demands to move it to the federal court since there are now over a hundred people suing the company for over $5 million and at least one of the persons suing Ripple is from a different state. Ripple’s attorneys wrote regarding the removal process:
“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.”
The lawsuit originated after several investors lost a lot of money after buying XRP at high prices during Winter of 2017. They claim that Ripple’s coin is and should be regulated as a security under U.S. law. If that is proven to be the case, and Ripple loses the lawsuit it can put them back $167.7 million which the plaintiffs are requesting, hence this could influence not only Ripple, but the whole crypto community.
Ripple was able to redirect the case to a Federal Court as multiple cases have since merged into one process which could give them better odds that in a State Level court.
Earlier in August a similar courtcase against Ripple was dismissed as the company was found not guilty of manipulating prices of its native token.
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