Ripple Moves to Court for Fraud Allegations DismissalJune 9, 2020
Ripple has moved to court asking to drop all fraud charges against it on a lawsuit as the plaintiff has failed to provide details to back its claims.
In the court documents filed on Monday, the San Francisco-headquartered company is seeking a dismissal of fraud charges along with prejudice to the plaintiff as the allegations are based on false representations.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
“By and large, the Court reasoned that Plaintiff failed to “explain how or why” the alleged misrepresentations were actually false,” the attorneys of Ripple noted. “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.”
As mentioned in the court document filed at a California court, the plaintiff has brought seven claims against Ripple and its CEO Bradley Garlinghouse for selling unregistered securities, along with fraud allegations.
The fraud allegations are based on several statements made by Ripple and Garlinghouse promoting the company’s products and its token.
The lawsuit also highlighted many instances for which the claims of the company violated the securities law and also raised questions on the token promoted as a “utility” token.
Fighting legal battles in many fronts
Though Ripple is seeking removal of all the allegations, it is stressing on three counts related to the fraud claims, as according to the defendants’ attorneys, the plaintiff has violated rules.
“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),” the court filing added.
“Where a plaintiff fails to explain how and why an alleged statement is false, the averments of fraud are insufficiently pled and must be disregarded.”
Notably, Ripple is facing multiple lawsuits for selling unregistered securities, a fresh one filed last month by a mysterious Puerto Rico-based company known for going after crypto companies.
Source: Read Full Article