Ripple Latest Lawsuit Victory Regarding XRP Coin as a Security: Big Win or Small Deal?
Ripple has been in the middle of a complex legislative gap: are its XRP tokens securities or not? While investors try to prove that it is and sue the company, Ripple is fighting to prove that they are not. Now, the company has won a small, but important victory on this matter.
Many parties are suing Ripple right now and the company has been pushing to merge together all these class action suits or at least to coordinate them and limit the number of cases that it is fighting.
This week, the California Superior Court suit filed by David Oconer, another disgruntled investor, was formally determined to be a “complex litigation”. What does this mean? It means that the suit will not be coordinated with the other ones. This follows another California case filed by Vladi Zakinov, which was also deemed complex some months ago.
All of this can be considered a victory because the Californian courts decide that a requirement for a case to be considered a complex designation is that it has to involve security claims and losses involving many parties. This is great for Ripple because a single judge will oversee all the cases in an effort to prevent different results for the cases.
The Oconer case is now assigned to the Judge Marie Weiner, who was successfully moved by Ripple to disqualify from presiding over the Zakinov case. At the moment, it is still unclear whether the company will try to do it again. Ripple filed to coordinate the actions earlier this month as it claimed that both of the actions had the same subject matter and involve the same parties.
Another class lawsuit filed by the investor Ryan Coffey was dismissed by the investor last week. After trying to move the case back to a lower court after Ripple took it to a higher one, the investor decided to drop it.
The War Is Not Won Yet
However, one should note that Ripple is far from safe. While all the cases are starting to be coordinated into a single one, Ripple might simply lose the cases. Also, there is the constant risk that the U. S. Securities Exchange Commission (SEC) will determine that the XRP tokens are a security, which can also bring a world of trouble to the company.