Is XRP a security? Class-action lawsuit against Ripple might move to Federal Court

12 Nov, 2018
by Joeri Cant
News
Is XRP a security? Class-action lawsuit against Ripple might move to Federal Court

According to CCN, Ripple Labs legal team filed to move a class-action lawsuit from the San Mateo Superior Court to the U.S. District Court, Northern District of California.

The legal representatives of Ripple said that the class action suit against them was filed by a group of investors that have no geographical limitations.

'Therefore, the matter should not be addressed by a state court.'

Ripple's attorneys further argued that the case can be shifted to federal court, pointing out the fact that there are more than 100 members of the suing class, at least one plaintiff is a citizen of a different state than the defendants and the total amount being sued for exceeds $5 million.

Experts like Stephen Palley, a partner at the D.C.-based law firm Anderson Kill, said that state court juries and judges tend to be more sympathetic to plaintiffs, possibly in part because state-level courts will draw from a more local jury pool.

Jake Chervinsky, an attorney at Kobre & Kim, agreed and said that the move of Ripple Labs legal team was brilliant.

Chversinky explained that the Ripple Labs team put significant effort in removing the case, likely because they feel that the odds of winning the class action lawsuit are higher in federal court than they are in state court.

Winning this class action lawsuit, would mean that Ripple could clarify once and for all that XRP is not considered a security under existing laws in the US.

XRP is currently trading at $0.52 and has seen 3.51% increase during the last 24 hours according to coinmarketcap.

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Read more about: Ripple (XRP)

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