Ripple lawsuit takes new turn as investors file fresh claims

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Disgruntled investors in Ripple’s XRP have filed fresh legal claims, arguing that the company was wrong to dismiss its case on the grounds it was raised outside of the statute of repose, CoinDesk reported.

Lead plaintiff in the class action against Ripple, Bradley Sostack, said the firm could not excuse itself from ongoing breaches of security law, and said Ripple was arguing “without precedent” to dismiss actions brought against it.

Ripple is accused of fresh breaches of securities laws by issuing XRP monthly to general sale and promising prices would rise. However, Ripple previously argued that the case had been brought outside the statutory limitation period of 3 years.

According to Sostack, the company’s monthly token sales constitute a “culpable act,” which would reset the statute of repose period, and mean the claims were in law brought legitimately within the time limit.

In the filing, Sostack argues this is supported by a Supreme Court ruling which says the statute of repose “runs from the defendant’s last culpable act.”

The development is the latest twist in the case against Ripple, with investors arguing that XRP constitutes a security, and consequently its unlicensed sale was a breach of securities laws.

The filing says there is no precedent cited which would support Ripple’s view that their liability is barred by statute.

Defendants have failed to cite any case – and indeed, no court has found – that liability for multiple offerings have been barred by the statute of repose.

The investors all lost various amounts in XRP investments, with Sostack personally said to have lost in excess of $118.000.

After the case was first raised last summer, Ripple responded by saying the claims had been lodged outside of the statute of repose period, and asked the court to dismiss the case outright on this basis.

The latest filing runs counter to Ripple’s view, and means the firm has until December 4 to submit a response.

According to sources close to the case, the trial is unlikely to clarify whether XRP is indeed a security as claimed by the plaintiffs. The case is expected to begin on January 15, 2020.