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  • Writer's pictureMichael Bacina

Ripple seeks strike-out of securities suit

Ripple has sought to dismiss a claim brought against it by purchasers of XRP tokens.  The initial claim asserts XRP is a security under US law.  The claim is a series of lawsuits which are expected to be certified into a single class action.

In their motion to dismiss, Ripple make some limited comments around allegations XRP is a security under US Law:-

  1. Asserting XRP has been recognised as a currency by the U.S. Department of the Treasury;

  2. Asserting that there is no common enterprise;

  3. Asserting that there was and is no promise Ripple would generate profits for holders of XRP.

Ripple also has taken the favourite pit stop of lawyers, limitations, asserting that the plaintiff's claim is out of time if the key date is Ripple's Initial Coin offering in 2013 and the failure by the plaintiff to plausibly allege that XRP is a security should lead to the matter being dismissed. It seems the plaintiff didn't purchase XRP directly from Ripple, which may well cause a problem in alleging that Ripple sold an unregistered security to the plaintiff...

The motion will be heard in January 2020 but is unlikely to consider as a matter of US law whether XRP is a security. Despite this, Ripple has the former SEC Enforcement Division of Enforcement director Andrew Ceresney acting on the case and named on the motion.

The full amended claim is here and the motion to dismiss is here. Coindesk has a further write up on this motion here.

Robin Sosnow Joshua Ashley Klayman Kuzar Drew Hinkes Irwin Stein Samson Williams Dr Philippa Ryan Jonathan Hatch Hannah Glass Louisa Xu 王莎莎 Tom Skevington

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