Ripple (XRP) is no stranger to controversy.
But the team can breath a bit easier after the U.S. Northern District California court dismissed a case against it.
You may remember that in May 2018, XRP investor Ryan Coffey claimed he lost $551.89 while trading XRP. He alleged that Ripple manipulated XRP value through the use of “salacious and sensational media promotion.”
He also alleged that Ripple is not decentralized, and that Ripple may have violated federal securities laws. It was also noted that managing director Brad Garlinghouse misled investors with his ambiguous statements about the value of the XRP.
So, the plaintiff sought relief through a “rescission of all XRP purchases, damages, and a constructive trust over the proceeds of defendants’ alleged sales of XRP.”
The court didn’t agree with the allegations and issued an “Order Denying Motion to Remand.”
In fact, a California federal judge refused to remand a putative securities class action brought by the plaintiff in the cryptocurrency Ripple to state court, finding that the investor’s request to remand the suit under the Securities Act of 1933 goes too far, says Law 360.
The court order read:
“Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court hereby DENIES plaintiff’s motion.”
This is now the third and final suit that was pending against the company.
It is quite interesting that this lawsuit was over a $551.89 trade loss, though.
The plaintiff lost money and then claimed the cryptocurrency should have been registered as a security. In his opinion, Ripple maintained a centralized ledger and has made good money from the increase in XRP’s value at the expense of investors.
Perhaps it would have been easier and cheaper had the plaintiff simply chalked up the loss.
The XRP Sell-Off Continues
While the court outcome may have added some legitimacy for Ripple, it’s not halting its slide.
After briefly consolidating at $.44, Ripple broke to lows last tested in late December 2017. There is hope that it can briefly bounce from the lower range of its descending channel.