Hot Development in Ripple Case: Federal Judge Decides!
The ongoing legal battle between two different plaintiffs and the company behind XRP, Ripple, is entering its next phase. A federal court judge ruled that two class cases against Ripple would be combined before the decision was made at the Federal level. The first case was led by Bradley Sostack and was filed on behalf of victims of XRP, who bought cryptocurrency and lost a lot of money after prices dropped.
The second case was recently opened by a mysterious firm known as Bitcoin Manipulation Abatement LLC, which claims that Ripple violated the law of securities through the sale and marketing of XRP cryptocurrency. The judge wanted these two cases, which were largely similar, to be combined in a single case to speed up the trial process.
Two class trials filed against Ripple united
Ripple suffered an early legal defeat at the US Federal Court on Thursday after Judge Phyllis J. Hamilton of the California Northern Territory District Court of the United States announced that Ripple’s two securities cases are currently being evaluated. The two lawsuits filed against Ripple were united by a federal judge earlier this week. Hamilton expressed his view that these two cases are “largely identical” and therefore should be combined:
ASSOCIATING THE BMA ACTION WITH THIS ACTION WILL PREVENT CONTRADICTORY RESULTS. OBVIOUSLY, WHETHER OR NOT XRP IS CONSIDERED A SECURITIES UNDER FEDERAL AND CALIFORNIA STATE LAW IS A KEY CONTENTION IN THIS CASE. ALTHOUGH THE COURT IS LESS CONCERNED ABOUT POTENTIALLY CONTRADICTORY RESULTS, IN ADDITION TO THE OTHER QUESTIONS PRESENTED IN THIS CASE, IT WILL TAKE CONSIDERABLE EFFORT TO DETERMINE THIS BASIC CONTENTION.
Will the securities of XRP be clarified?
Long-standing lawsuits on XRP’s securities status have been going on, even for two years. Ripple is sued by a number of investors who claim that XRP has been sold as an indifferent security and are waiting for a refund. In early December of last year, Ripple filed a lawsuit to dismiss the case and claimed the timeout. In other words, investors have not filed for more than three years after Ripple started selling XRP. However, the company’s effort did not yield positive results and the judge dismissed Ripple’s case.