Tom is a writing enthusiast who has covered breaking news and analytical stories in the cryptocurrency, blockchain, finance and tech sectors for the last 2 years. He is passionate about contributing to the future of journalism. In his free time, he creates hip/hop music and enjoys swimming.
The Northern California District Court has dismissed the claims made by two investors against Ripple regarding XRP as false.
The Northern California District Court findings released online in the last 24 hours by Law360 state that claims regarding Ripple and the XRP token made by two investors cannot be proven.
The case was concerning the on-going legal dispute which began in May 2018 between Ripple Labs including CEO Brad Garlinghouse and disgruntled investors as to whether the native token XRP is, or is not a security by legal definition. They claim that Ripple should have made a formal application to the U.S. Securities Exchange Commission (SEC) for their cryptocurrency XRP to become a security.
The company has been consistently adamant of the latter because of any direct connection between the company Ripple and their token XRP, maintaining innocent on any legal wrong-doing during the course of this claim.
In the case, the court found that the lead plaintiff failed to provide the necessary evidence in the courtroom to support multiple claims regarding XRP’s non-security status, Brad Garlinghouse’s personal holdings and monetary intentions, XRP’s sale strategy, as well as the company’s software products.
The court file concluded that all of these accusations were “purported misstatements” and that “in short, Plaintiff fails to offer the factual allegations needed to show that Ripple and Mr. Garlinghouse’s statements were false when made”.
Ripple’s Legal Team added that all outstanding fraud claims were “unsupported leaps of logic.” In June 2019, they applied for a court dismissal against the mentioned plaintiffs. The latter responded with opposition to the motion claiming to hold over “a dozen false or misleading statements made by Ripple and its CEO.”
The court hearing has today dismissed all of these statements as false. The impact that will have for the future of Ripple as a company and a legal entity, as well as XRP, is perhaps more propitious than before.