The federal lawsuit against Ripple Labs has taken an unexpected turn, as the legal team representing the company and CEO Brad Garlinghouse has argued Statements that have exaggerated the usefulness of the XRP token cannot be proven wrong.
Lawyers from Ripple and Garlinghouse have argued this, according to Law360 court documents Bradley Sostack, plaintiff and investor in XRP, cannot prove that Ripple misled investors with high-sounding claims about XRP and sold the token as an unregistered security. The legal team described Sostack’s statements as “unsubstantiated logical leaps”.
“”In summary, the plaintiff does not offer the actual allegations necessary to demonstrate that the statements made by Ripple and Mr. Garlinghouse were incorrect at the time of the submission“said the file.
“It makes no sense”
Sostack’s lawyers used the argument that “XRP has no use”, something that, according to Ripple’s legal team, should have been brought up in the first lawsuit against the company.
The original case against the crypto business started in August 2019 when Sostack’s attorneys filed a class action lawsuit against Ripple.and claimed that he sold his XRP token as an unregistered value.
The case was changed in March to include a lawsuit accusing Garlinghouse of selling XRP to potential investors while tacitly liquidating 67 million tokens. Of your stocks. The lawsuit alleged that Ripple knowingly exaggerated the real use of cryptocurrency as a “bridge currency” to facilitate international payments.
After the lawsuit, Lawyers argue that Sostack could not explain why the allegedly wrong statements by Ripple or Garlinghouse are actually wrong..
“”The plaintiff gives no reason and claims no facts as to how Mr Garlinghouse’s statement could mislead the public. if it is true, “says the court file.
In addition to Sostack’s case, a company called Bitcoin Manipulation Abatement filed a lawsuit with the US District Court in May, in which Ripple has been charged with similar allegations: misleading investors by selling XRP as an unregistered security..
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