Multiple Cases Against Ripple Gets Consolidated

Aug 31, 2018 at 16:19

Amid the ever growing number of cases filed against it, Ripple has managed to convince a trial court to consolidate multiple lawsuits condemning the company for its alleged use of XRP tokens as a security into a single case.

A California Superior Court suit filed by investor David Oconer is now classified as complex litigation and will now be coordinated alongside other cases including the one filed by another investor, Vladi Zakinov, which was also considered complex last June.

With the said development, a single judge will now oversee actions relating to the case to prevent duplicated efforts and potentially different results due to different cases.

Meanwhile, another related class-action lawsuit against Ripple, filed by investor Ryan Coffey, was voluntarily dismissed last week. The case was moved to the District Court of the Northern District of California by Ripple, though he tried to move it back to a lower court.

Ripple is being hounded by lawsuits claiming that XRP must be considered as a security since the company used the sales of the tokens in order to fund its operations and the development of the XRP ecosystem.

If allegations against XRP are found to be true, Ripple and cryptocurrency exchanges that list the coin for trading will likely face legal ramifications.

As of this writing, XRP has a market cap of $13 billion and is valued at $0.3337 per token, down by 1.2 percent.