Against Ripple Labs Inc. and its CEO brad Garlinghouse (Brad Garlinghouse) filed a third claim for securities fraud. In the document of 28 pages describes the reason why XRP must be declared action: it is available, is provided and maintained by Ripple. The company has taken a number of measures of autonomy XRP to avoid such developments. If the XRP will be recognized as a valuable paper, Ripple will be charged with violation of U.S. law.
A class action lawsuit on behalf of College student David Oconer filed the managing Director of “Robbins Arroyo LLP” Brian J. Robbins (Brian J. Robbins). The document adopted by Fax to the Supreme court of the state of California, San MATEO, contains more than 20 pages describing how the Ripple test violates Howie.
Mr. Oconer and his lawyers emphasize that Ripple tried to manipulate the price of XRP, including using escrow 10 million tokens, thereby creating an unwarranted gap in the market. According to the concept of Ripple, this was to be a kind of guarantee for long-term investors that the company will bring to market the entire stock. However, this has led to the accumulation of a significant share of the stock of XRP in the hands of Ripple, which is also mentioned in the text of the statement of claim.
This is the third such lawsuit against Ripple, filed beginning in may 2018. All applications are United by the claim to Ripple the alleged illegal actions of the company, which “totally” controls the token, but does not recognize its share. The statement made on behalf of Oconee, places great emphasis on the violation of the Howie test. Not wanting to let the litigation go, the Ripple was hired as the lead attorneys for the former employees of the Commission on securities and stock exchanges of the USA, Andrew Suresne (Andrew Ceresney) and Mary Jo white (Mary Jo White).
XRP has repeatedly been at the center of controversial stories: while the stock of other major cryptocurrencies depends on miners, 60% of XRP still belongs to the creators of the token. If this claim is satisfied, the court may order to cease all trading operations Ripple and probably assign compensation payments to investors. Some violations related to securities, incriminated and can lead to criminal penalties, however, the likelihood that this will happen with Ripple and Garlinghouse low.
Recall that after the first lawsuit Ripple decided to rebrand XRP to distance itself from the token.
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