Here's an update on where the case stands, what's next, and when we'll answer the question that never dies: "is XRP a security?"
Thread. 👇
The plaintiffs say every class member--meaning every XRP purchaser--is entitled to a refund, plus compensatory damages.
If you can believe it, the case was tied up for almost nine months just to decide whether it should be in state or federal court. 🤦♂️
At the time, I called this a "minor but meaningful" victory for Ripple. It's a battle they fought hard to win, but a small one at the start of a long war.
(1) appointing lead plaintiff & lead counsel
(2) re-filing a consolidated complaint
(3) responding to the complaint
cloudup.com/cZB5tFQvbIo
The notice tells all potential class members out there--again, all XRP purchasers--that they can seek appointment as lead plaintiff, if they want.
businesswire.com/news/home/2019…
One of the original plaintiffs could become lead plaintiff, but not necessarily.
The Court will then need some time to make a decision. Nothing else will happen before it does.
At the very earliest, the consolidated complaint will be due in July.
I expect that will be a motion to dismiss, arguing that the allegations in the complaint--even if true--don't add up to a violation of the securities laws.
I've mentioned that class actions move at a glacial pace, right?
So, the court might not even consider the motion until November. 😴
Point is, I won't be surprised if there's a motion to dismiss still pending before the court one year from today.
No, it's not public. You don't get to live stream depositions of Ripple execs.
I won't bother telling you all the stuff that happens during and after discovery. I'll cover it if and when the times comes.
Pre-certification settlements have limited upside for both parties, so I'd be surprised if this settles soon.
Probably not in 2019 unless Ripple decides to change course & voluntarily treat XRP as a security (which I sincerely doubt). Class actions are good for many things, but quickly resolving complex securities issues isn't one of them.
The SEC's enforcement lawyers are probably following along to see how the case develops, but they aren't directly involved & they can do whatever they want regardless of what happens in the class action.
I don't know about this particular case, but in general, many law firms take class actions like this on contingency--no win, no fee--so it could be that the plaintiffs aren't paying anything at all.
Uh, probably not. There is such thing as third-party litigation funding, but that's generally a calculated investment, not a malicious attack.
And courts are where the law is *really* made. ⚖️
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