Ripple goes to court seeking dismissal of fraud allegations against it

Ripple goes to court seeking dismissal of fraud allegations against it
Written by:
Jinia Shawdagor
9th June, 11:36
Updated: 9th June, 11:37
  • Ripple claims the plaintiff failed to provide evidence that backs the alleged fraud charges.
  • The plaintiff filed seven charges against Ripple and its CEO, Brad Garlinghouse.
  • Ripple continues facing multiple lawsuits for selling unregistered tokens.

Ripple, the firm behind ripple (XRP) has moved to court requesting the dismissal of all fraud charges against it. Ripple filed for dismissal noting that the plaintiff in the ongoing lawsuit had failed to provide details to support the fraud claims. Court documents filed on June 8 revealed this news, stating that the San Francisco-headquartered firm seeks dismissal of the charges with prejudice to the plaintiff as the allegations are purportedly based on false representations.

Ripple’s attorneys said,

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

“By and large, the Court reasoned that Plaintiff failed to “explain how or why” the alleged misrepresentations were actually false. Plaintiff’s Consolidated First Amended Complaint (“FAC”) attempts to resuscitate these claims, but fails because Plaintiff still has not alleged with particularity “how” and “why” the alleged misrepresentations are false. Plaintiff’s Fraud Claims should again be dismissed, this time with prejudice.”

Per the court documents, which were filed at a California court, the plaintiff filed seven charges against Ripple and its CEO, Brad Garlinghouse. These included engaging in the sale of unregistered tokens and fraud. The fraud charges are reportedly based on several statements that Ripple and Garlinghouse made to promote the firm’s products and token. On top of this, the lawsuit outlined the instances in which Ripple’s statements violated the securities law and raised questions on the promotion of XRP as a utility token.

Ripple’s unending lawsuits

While Ripple seeks the removal of all charges, the firm reportedly emphasized three counts related to fraud claims in which the defendant’s attorneys believe the plaintiff violated rules.

Per the court filing,

Rule 9(b) requires plaintiffs alleging fraud to “state with particularity the circumstances constituting fraud…A plaintiff who successfully identifies the “who, what, when, where, and how” of a statement, without more, has not satisfied Rule 9(b),

Pleading its case, Ripple said that when a plaintiff fails to explain how and why an alleged statement is false, the averments of fraud become insufficiently pled and must, therefore, be disregarded.

This news comes as Ripple continues facing a slew of lawsuits for selling unregistered securities. The most recent filing came from Bitcoin Manipulation Abatement (BMA) a mysterious Puerto Rico-based firm that is reportedly infamous for going crypto companies.

Do you think the dismissal of all fraud charges against Ripple can have a positive impact on the price performance of XRP? Share your thoughts in the comment section below.

Invezz uses cookies to provide you with a great user experience. By using Invezz, you accept our privacy policy.