The news everybody has been waiting for! Finally a public update to the Ripple Lawsuit about selling an unregistered security. Ripple has filed a motion to dismiss a lawsuit claiming that it has violated the United States securities laws by selling an unregistered security XRP. As we all know, Ripple is not creator nor do they control XRP.
So what does this mean? A motion to dismiss is a:
party’s request to a court to dismiss a case because of settlement, voluntary withdrawal, procedural defect or claim is one for which the law provides a remedy.
Under the Federal Rules of Civil Procedure, Rule 41(a) [USCS Fed Rules Civ Proc R 41] a plaintiff may voluntarily dismiss the case.
Similarly a defendant may ask the court to dismiss a case, based on one of the defenses listed in Rule 12(b) [ USCS Fed Rules Civ Proc R 12]. These defenses include
Lack of personal jurisdiction
Lack of subject-matter jurisdiction
Insufficient service of process
Plaintiff’s failure to state a claim on which relief can be granted, and
Failure to join an indispensable party.
Bradley Sostack, the plaintiff, in this case, is trying to say that Ripple has been selling an unregistered security and wants the money back that he has lost. Ripple lawyers state that Bradley has failed to bring a case within three years of the initial offering which dates back to 2013. Bradley states that he has purchased XRP during an ICO, which we all know is 100% false. Ripple has never had an ICO.
The filing goes on to say:
“Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders; and the XRP Ledger is decentralized.”
Now listen up, here is the biggest take away from all of this. Since XRP is a currency, it can not also be a security under the law. What have we been saying all along? That XRP was already deemed a currency and therefore can not be classified as a security.
Other Key Take-Aways:
- Plaintiff does not claim he bought XRP directly from Ripple
- Bradley bought and sold XRP through a secondary trading exchange
- XRP has been deemed a currency and can not be labeled security under the law
- Ripple never had a ICO
- Bradley has failed to bring a case within three years
Here Is The Full Document: