A class action lawsuit against Ripple Labs Inc, XRPII LLC, and CEO Braley Glaringhouse, was filed by managing partner of Robbins Arroyo LLP, Brian J. Robbins. This was done on behalf of San Diego college senior David Oconer.
The lawsuit was signed by fax in June, late June 2018 in the San Mateo, California Superior Court. The document is more than two dozen pages that were set about making the case Ripple is violating the Howey Test.
Mr. Oconer’s legal team stressed how Ripple fought to manipulate the XRP price. One of the means used was to place tens of millions XRP tokens into a kind of escrow, which lead to an arbitrary scarcity.
This is the third time such a lawsuit is filed against Ripple, since early May 2018. What kept coming in all the lawsuits is the claim XRP is a security as defined under US regulatory statute, which literally means that Ripple Labs is the token’s puppet master indistinguishable from XRP itself. Ripple has hired two former US Securities and Exchange Commission heavies: Andrew Ceresney and Mary Jo White, as lead counsel for these cases.
The story behind the origin of XRP is causing a scenario in which it has long been held in a controversial light. Ripples appeared “ex nihilo” with more than 60 percent still being held by its parent company while leading cryptos were to be mined on the chain. The most likely thing to happen to the company is for them to cease all trading if being deemed a security. Holders might be given the chance at refunds.