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Ripple Has to Respond Over Ongoing XRP Sales, an Investor Lawsuit Claims

A newly-released legal filing states that the dispute of Ripple insisting that an XRP holder had been kept in the dark for so long before filing a lawsuit has no grounds, is weak, and has no citation.

The complainant, Bradley Sostack said, in response to Ripple, that because of its on-going XRP sales, the three-year period allowing the victim to claim its alleged offense will not make them an exception of the existing security laws.

Ripple Has to Respond Over Ongoing XRP Sales, an Investor Lawsuit Claims 1

Last Monday, a new legal filing had been released. Sostack responded to Ripple, motioning to dismiss it from September stated that the XRP monthly sales of Ripple cause pending securities sales.

Sostack is the petitioner in a legal battle between CEO Brad Garlinghouse and Ripple. According to the claims, the payment startups sullied the US securities laws by offering to the public the tokens along with a promise that the values of XRP will increase in the future. Furthermore, the petitioner said, in an August filing, that $118,100 of his money vanished into thin air.

He continued by saying that the defense is depending on its decision that cannot be sharpened by the Supreme Court.

The response states that the defendants didn’t have anything to cite for the case and failed to show the court. The statute of repose had stripped their obligations of the offerings.

This lawsuit was first filed last summer. In August 2019, Sostack, together with his lawyers Taylor-Copeland Law and Susman Godfrey, filed an amended class action complaint. They have linked the alleged misconduct of the Ripple to violating the US Securities and Exchange Commission (SEC), stating that the XRP is considered a security.

In response to this, Ripple said that the petitioner failed to file the lawsuit within the statute of repose. He also was unable to file the suit under the law.

According to the legal experts, during the upcoming proceedings, it will be unlikely to be answered whether or not the XRP is a security.

Ripple must answer the new filing on December 4 with their oral arguments and counteractions that are expected to start on January 15.

 

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