Crypto Lawyer Shares Ripple Securities Class Action Lawsuite Update: Judge Denies Remand Motions
Several months ago, a class action lawsuit between XRP investors and Ripple was established, combining the arguments from plaintiffs Avner Greenwald, David Oconer and Vladi Zakinov. The plaintiffs had originally filed after purchasing the XRP token, and then the market crashed, taking down their investments with it. Based on the lawsuit, the plaintiffs think that XRP should have registered as a security, which would have forced them to be subjected to different rules with the SEC.
The court case has already gone through many changes, even since November when defendants and their lawyers removed the suit from San Mateo Superior Court, based on court documents. Due to the sizeable nature of the class action suit, Ripple’s attorney moved to push the case to the federal level. The Class Action Fairness Act dictates that the case could be removed to the right federal district court if they cover 100 or more members if the members are from multiple states outside of the filing state, and the amount in question is over $5 million.
The plaintiffs fought back, moving to keep the court case in San Mateo County Superior Court, which was done through several individuals requests. Presenting their motions before the hearing on February 13th, after much consideration, the judge was pushed to make a decision whether the case will continue to be handled in federal court, or if moving back to the former courts would properly serve the terms of the case.
In a tweet from a lawyer familiar with the case, Jake Chervinsky, he provided an update of what has been changing. He stated that, though the plaintiffs had submitted motions to remand, they were denied. Basically, the case will remain in federal court, which is a substantial advantage for Ripple.
Ripple securities class action update: 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 plaintiffs will file an Amended Consolidated Complaint by March 30.https://t.co/4gdQVaCrlM
— Jake Chervinsky (@jchervinsky) March 1, 2019
With the denial, there are three other orders that the Court issued. Within 14 days, the parties involved will need to meet and discuss the way that the proceeding litigation will play out. However, within 30 days, the plaintiffs are ordered to produce the amended version of their consolidated complaint. At that point, the defendants could move to dismiss it, but the parties would need to file a stipulated briefing schedule within 30 days as well. If there is no motion to dismiss, the defendants will still need to file by that deadline, but their submission will include a statement that shows their intention not to file a motion.
Now, this story will wait for the next milestone in its progress with the Amended Consolidated Complaint on March 30th. To view the full denial of the remand, visit https://cloudup.com/cy5DL3u73bS.