According to NEWSBTC reports, Ripple Labs is trying for their own lawsuit over to the federal court, the behavior of Ripple Labs is considered to be a good move.
The case, Ripple Labs as the defendant, the plaintiff for investors in Ripple. Investors accused the blockchain company unregistered securities products to provide investors with (XRP, tokens) and the products were Ripple malicious manipulation, maximize sales tokens in order to realize their own interests.
The case itself is not large, is initiated by some to be cut chives rookie but investors, the judgment will greatly influence the market price of XRP.
If the XRP was found to be unregistered securities products, then, as the settlement tool XRP, will lose its big function, will be the mainstream exchange shelf, liquidity is greatly reduced.
About whether the XRP securities products, Ripple CEO Brad Garlinghouse has explained,
XRP is not a security, there are three reasons: if tomorrow Ripple went bankrupt, XRP ledger will continue to run; this is an open source, to the center of the technology; if you buy XRP, does not mean that the purchase of the shares of Ripple, I mean, if you buy a XRP, to Ripple no ownership.
However, that said, obviously, Ripple is aware of the importance of this case, it large law firm Skadden as its legal representative, but also invited the famous lawyers from Debevoise & Plimpton, including the former chairman of the SEC Mary Jo White, a former SEC enforcement director Andrew Ceresney.
On Wednesday, Skadden to transfer the case to apply, said because San Mateo high court judge, the case with the other residents of Israel Ripple litigation case for California case to deal with, so the application will be transferred to the federal court to hear the case.
The application from a legal perspective was established, according to the provisions of the “collective action fairness act”, the collective lawsuit can be transferred to the federal trial court to meet these three points: 1. the number of collective action more than 100 people; 2. have at least one of the plaintiff and the defendant is from citizens of different countries; 3. of the amount of litigation over $5 million.
Skadden will transfer the case to the federal courts to deal with, is likely to increase the probability of.
High bokin LLP (Kobre & Kim) Jake Chervinsky Skadden think this decision is very clever, it said that although he does not know the Ripple of the case history, but can be concluded that the Skadden in federal court in favor of the probability is greater than the state court , otherwise Skadden will not painstakingly transfer the case.
This paper mainly compiled from: https://www.newsbtc.com/2018/11/12/ripple-moves-xrp-security-lawsuit-to-federal-court-attorneys-call-it-brilliant/
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