Ripple Succeed To Move Securities Lawsuit To US Federal Court
Ripple argued that the collective accusations cannot be considered within the jurisdiction of one state because the investors are residents of the several states. Peter Morrison, a lawyer that represents the interests of Ripple Labs, considers the transfer as a fully justified action, since the funds appearing in the lawsuit exceed the sum of $5 million, and there are about a hundred people among the applicants.
Jake Chervinsky, the law company Kobre & Kim representative, wrote in his Twitter account that the Ripple team had the brilliant tactic. He noted that the attempt may be unsuccessful but the company already has made a deft move to reach the level of a federal consideration.
Ripple's legal team showing some tactical brilliance here.— Jake Chervinsky (@jchervinsky) 9 ноября 2018 г.
It's hard to explain the procedural maneuver in one tweet & I'm not going to thread this, but suffice to say it's a *seriously* crafty attempt to go federal. Might not work, but slick regardless.https://t.co/DuR5kWNJwy
Ripple Labs may hope for higher chances of a positive outcome when considered in federal court. If the judges recognize the victory for the company, it will allow to determine the legal features of the XRP coins, Chervinsky stressed.
The litigation against the Ripple Labs started in May 2018. The investor who lost his funds has filed a collective lawsuit. In the following months, two more people went to court with similar charges. In August 2018, the first lawsuit was withdrawn by the author, and the remaining two were merged into one case by the court of California.
Earlier it was reported that a former Google employee Amir Sarhangi held the position of vice president of Ripple products.