An official document was issued on August 10, 2018, saying that the motion to remand against Ripple, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse has been denied by the U.S. District Court, Northern District of California.
The Lawsuit against Ripple
Ryan Coffey initiated the original lawsuit on May 3, 2018, in a court at San Francisco. The XRP investor claimed that while trading XRP tokens he lost $551.89. The law firm Taylor-Copeland filed a class action. They alleged that the XRP tokens sold by Ripple and the XRP are not legitimately decentralized. And it was in violation of both the U.S. the Securities Act and the California Corporations Code.
Court denies Motion
However, the court’s documents said that the plaintiff did not show if the presence of Securities Act issue was adequate to stop the defendant from removing the action done by him under the Class Action Fairness Act. The court observed that,
“The parties candidly admit that their research failed to turn up any case directly addressing this question and the court’s own research fared no better.”
Moreover, the plaintiff intended to gain a “rescission of all XRP purchases, damages, and a constructive trust over the proceeds of defendants’ alleged sales of XRP”. David Silver, a partner at Silver Miller Law Firm also claimed that it will bring a judicial transparency. He said, “lawsuits like this are simply private litigants testing the legitimacy of these companies”. Meanwhile, a spokesperson at Ripple claimed that,
“We continue to believe XRP should not be classified as a security.”