Plaintiffs in Ripple Labs case finally responded to the request for dismissal of securities claim, as we are reading in our latest XRP price news.
A hearing on the decision to dismiss the charges will be held on August 26 this year and the plaintiffs in Ripple Labs case responded to the company’s motion to dismiss fraud charges. The motion was filed by Ripple a month ago when the company argued in a document before the Northern District Court of California that the plaintiff’s evidence was not sufficient. Ripple was facing this lawsuit since 2018 which made it one of the company’s oldest litigation. Bradley Sostack is the primary plaintiff suing Ripple.
In a document referred to the legal representatives of Ripple, we can see that the plaintiffs had no real evidence linking Ripple, the CEO of the company, or the employees to make statements in support of the charges. The document presented by the opposing party rejected the above argument and the plaintiffs said that the document submitted by their counterparty is unspecified:
“The defendants fail to establish that the factual claims contained in the document cannot reasonably be challenged. In fact, the defendants do not even specify which factual assertions in the document they are asking the Court to consider.”
Sostack’s lawyers denied the letter from the US Consumer Financial Protection Bureau saying it is not relevant to the case. Ripple cited the document as evidence that XRP is a utility token which in fact cannot be classified as a security because of its counterparty to SWIFT’s existing system. According to the plaintiffs it cannot be used as a test of truth. The plaintiffs asked the court to dismiss the arguments based on the CFPB’s statements. Defendants didn’t specify which factual assertion with the document they were supposed to take judicial note of. The defendants were also trying to use the document for the notion that the XRP tokens had utility during the relevant time period.
Ripple Labs is charged with making the unregistered sale of securities in violation of the Securities Act and California Companies Code sections 25110 and 25503. In addition, Ripple is charged with violating Section 15 of the Securities Act and violating section 25401 of the California Corporations Code. Ripple and specifically its CEO Brad Garlinghouse, are accused of misleading advertisements.
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