Legal battle between Ripple and investors, who invested in XRP, passes to the next phase.
Lawyers for Ripple and its affiliated defendants filed to move a consolidated class-action lawsuit from its previous venue at the San Mateo Superior Court to the U.S. District Court, Northern District of California.
According to defendants, a class action meets the requirements of the District court. In addition to requests for a change of venue to another court, the lawyers of the Ripple mentioned the need to protect the company from lawsuit, according to which XRP is classified as a security.
The claim said:
"The plaintiffs do not complain that they were misinformed about the nature of the transaction. However, they still consider themselves victims, because defendants did not register XRP as "securities" in the Securities & Exchange Commission".
According to the document, a class action includes all the previous lawsuits filed by plaintiffs David Oconer, Avner Greenwald and Vladi Zakinov. Ryan Coffey, filed the fourth claim, he withdrew it in August of this year, despite the connection to Zakinov’s suit. At the moment defendants is Ripple Labs, the company's subsidiary XRP II, and Bradley Garlinghouse, Ron Will, Christian Larsen, Eric van Miltenburg, Zoe Cruz, Antoinette O'Gorman, Susan Athey, Ken Kurson, Anja Manuel, Takashi Okita and Ben Lawsky.
Ripple’s attorneys argue that, under the U.S. Class Action Fairness Act, the case can now be shifted to federal court. They draw attention to the fact that there are more than 100 members of the suing class, one of whom is a citizen of another country, and the total amount of the claim exceeds $ 5 million.
In the lawsuit, which was filed by the citizen Isralie Avner Greenwald, said that "thousands" of people have lost money after purchasing XRP. In accordance with the requirements of the plaintiffs, the company Ripple have to indemnify the investors in the amount of 167.7 million dollars.
Stephen Palli, partner of the law firm Anderson Kill, said that the action forwarded to the circuit court, and automatically goes to Federal court. Therefore, the plaintiffs can bring the case in state court by filing a petition. That's what they did the day after the filing attorneys Ripple. Thus, the Ripple will respond to the complaint within a maximum of two weeks after the possible rejection or approval of petition to reverse the movement of the case.
Stephen Palli about legal battleand collective lawsuits:
"It is believed that local juries and judges are more favorable to plaintiffs. Probably because jurors in such courts will be the locals, but with more subjectivity. On the other hand, defendants believe that Federal court would render them more impartial verdict."