Ripple Receives Court Boost in Fight Against XRP Securities Lawsuit
It appears that Ripple has been successful in consolidating yet another lawsuit brought against show court documents.
Ripple continues to fight off a number of negative claims concerning its XRP token, an aspect that has almost overshadowed great efforts to develop the platform’s blockchain solutions.
The biggest headache so far for Ripple has been the increasing number of lawsuits brought against it, and the persistent perception that its XRP token is a security.
But perhaps the latest hurdle is even more challenging. How does it approach the various cases and get what’s best for the platform and its community?
As for that question, it appears the company has secured an early boost. Its efforts to have all the different lawsuits consolidated are on track and could be formalized in due course.
Facing numerous cases in different courts and under a number of judges was always going to stretch the crypto company’s resources. It could also have meant that facing the prospect of dealing with multiple outcomes if they were to arise.
These possibilities have seen Ripple’s legal team push to have the lawsuits either combined or coordinated. It is looking like that will be the case for all the lawsuits, or if not, at least for some of them- assuming there could be more.
On Wednesday, August 29, Judge Etezadi of the Superior Court in California designated David Oconer’s suit against Ripple Labs, XRP II LLC, and Brad Garlinghouse as “complex”. It means that a moving forward, the case will be coordinated- or handled together with other similar suits.
The August 29 decision follows a similar determination in another case filed by Vladi Zakinov, a California based investor. According to court documents available to the public, the courts declared the case complex in June.
Ripple had asked the court to combine the two cases on grounds that they represented the same issues and involved the same parties.
And now combining the two cases represent a kind of interim victory for Ripple and its team. It has only been possible due to the availability of legal grounds to request the court to combine a number of cases.
The state of California has unique court rules that could be essential to the cryptocurrency’s efforts. Under the rules, a case qualifies as complex when it involves securities claims. A case will also fall under this category if it involves investment losses filed by several parties.
The two class-action lawsuits satisfy both requirements and are therefore deemed complex. Once a case is declared complex, the court assigns it to a single judge.
The judge handles everything that relates to the various cases as one suit, preventing a scenario where parties duplicate efforts or instances of conflicting results arise.
It is only a single step, but it must feel like a win for Ripple considering that the SEC overlooked it when it declared in June that Bitcoin and Ethereum were not securities. It is early days as they say, and Ripple might yet suffer bruising court battles.
Ripple, a San Francisco based company, has on numerous occasions sought to clarify that the company and the XRP token are not one and the same.
Recently, the company stated that XRP is an independent crypto asset that uses the XRP Ledger. It trades independently and is owned by many people.
On the other hand, Ripple is a software technology company that uses blockchain to develop solutions to the problems affecting cross-border money transfer. It owns lots of XRP (one of the accusations against it), but it has no control over its market.