<

Ripple claims the plaintiff failed to provide evidence that backs the alleged fraud charges

According to court documents on June 8, Ripple is seeking to dismiss biased allegations against plaintiffs because the allegations are based only on false claims. Moreover, CEO Brad Garlinghouse also said that an ongoing lawsuit fails to show how Garlinghouse committed fraud when allegedly selling millions of dollars’ worth of XRP in 2017.

ripple-claims-the-plaintiff-failed-to-provide-evidence-that-backs-the-alleged-fraud-charges

Ripple and CEO Brad Garlinghouse

Ripple moved to the court requesting the dismissal of all fraud charges against it

Ripple’s attorneys said:

“By and large, the Court reasoned that Plaintiff failed to” explain how or why “the alleged misrepresentations were 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 significantly 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.

While Ripple sought to eliminate all allegations, the company highlighted three crimes involving fraud claims in which the defendant’s lawyer believed the Plaintiff had violated the rules.

The court stated:

“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) (b).”

In his case, Ripple said that when a plaintiff does not explain how and why an alleged statement is false, the average of the fraud becomes insufficiently committed and, therefore, must be despised.

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 written infamous for going crypto companies.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS