Ripple have filed a motion to the courts to toss out the lawsuit that claims Ripple violated state and federal securities laws by selling its native token, XRP.
XRP investors filed the lawsuit on August 5, 2019, claiming that XRP tokens sold by Ripple are unregistered securities based on the guidance of the Securities and Exchange Commission (SEC).
In the mammoth 37-page document, Ripple have avoided the key question: is XRP a security or not?
“Under Plaintiff’s own allegations, defendants offered XRP to the public throught 2013 through 2015. Accordingly, the three-year statute of repose expired as of 2016 (three years after the sales cited in May 2015 settlement) and in no case later than May 2018 (three years after the May 2015 settlement agreement in which ‘Defendants acknowledged that they sold XRP to the general public,’ Complaint ¶ 25). The Securities Act claims in the Complaint, filed August 5, 2019, are therefore untimely and barred by the statute of repose.”
(Extract from the motion)
The companies legal team cites several discrepancies within the lawsuit filed by Bradley Sostack, the lead plaintiff. Ripple have argued that the plaintiff should have filed the lawsuit in 2013 when the XRP token first became available in the market, not in 2018 when they first filed their claims.
Twitter users were quick to respond and lawyer Jake Chervinsky, (a crypto fan) :
“Ripple has finally filed their motion to dismiss in the pending securities class action regarding XRP. They make twelve separate arguments for dismissal of the plaintiff’s claims. Not a single one squarely addresses whether XRP is an unregistered security.”
We will await the court’s verdict but it’s clear this one may take some time to be resolved. In the meantime, XRP/USD had a decent run 3-4 days ago but has now pared back 50% of the move to trade at 0.2908 to just dipping under the psychological 0.3000 handle again.
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