As per federal court ruling, ongoing securities lawsuit against Ripple will stay. The news came through a tweet by lawyer Jake Chervinsky on March 1st.
Although, the the court has denied any motions for remand, it is a minor but a noteworthy victory for Ripple.
As per the ruling United States District Judge Phyllis J. Hamilton, of the Northern District of California, has called for the class action suit against Ripple Labs, including XRP II, its subsidiary and Brad Garlinghouse, Ripple House. The suit followed the sale of unregistered securities.
The document also mentions that previously the court mentioned that interstate class actions mostly involve a larger number of people and resources. In addition, to more interstate commerce ramifications than in any other lawsuit. The Committee also reiterated that such cases lie best in the federal court ‘s operational scope.
As rer the ruling, the parties have been granted 14 days for discussing and determining on the litigation process. As a matter of fact, on the expiry of 30 days of the order, Ripple can file an amendment consolidated complaint.
Lawyers standing by Ripple in the lawsuit have purportedly filed an application to move the case to federal level. The application was filed in November of last year. Furthermore, it will supposedly allow Ripple to prove with enough credibility that XRP token is not a security under U.S. law, if it wins.
Law firm Taylor-Copeland filed the class action lawsuit against Ripple was in May of last year. The lawsuit stated that plaintiff, Ryan Coffe had purchased 650 XRP on Jan. 5. He then sold it on Jan. 18 of last year for USDT. Later, he exchanged it for U.S. dollars. Counting for a loss of around 32 percent, or $551.89.
The class action suits also alleges that the defendants have violated both the Securities Act and the California Corporations Code. The plaintiffs are asking for payment for attorney’s fees, the costs of the suit, and punitive damages. In addition to, declaring the sale of XRP an unregistered securities sale.