Ripple sent a motion to the court to dismiss a lawsuit filed by investors against the company’s CEO, brad Garlinghouse, because of the lack of evidence of fraud.
Recall that in may 2018, investors filed a class-action lawsuit against Ripple, accusing the company of conducting an unregistered ICO in 2013. This spring, investors added new claims to the lawsuit, claiming that Brad Garlinghouse sold 67 million XRP during 2017.
Garlinghouse stated that he held the position of “long-term Hodler”, and the sale of coins contradicted his claims. In addition to violating securities laws, the plaintiffs accused Ripple of artificially increasing demand for XRP and providing false information about the practical value of this cryptocurrency.
On Monday, Ripple’s lawyers sent a motion to the court, saying that the main plaintiff, Bradley Sostack, did not provide substantial evidence of fraudulent actions and false statements made by Garlinghouse and Ripple employees.
According to the US Federal code of civil procedure, in order for an action to be considered fraudulent, the plaintiff must provide information about how the fraud was committed, and whether it was premeditated.
Ripple believes that the lawsuit does not meet these requirements. The plaintiffs did not provide specific statements of the company that mislead investors, and did not explain why they consider these statements to be false. In addition, Sostak did not indicate what percentage of personal assets he had in the alleged multi-million dollar sale of XRP.
Selling part of the assets in XRP does not mean that Garlinghouse no longer holds a “long position” on this asset. The lawyers asked the court to dismiss the fraud charges without retaining the plaintiffs ‘ right to sue on the same grounds.
Recall that last week, analyst and experienced trader Peter Brandt (Peter Brandt) also said that XRP is a “fraudulent cryptocurrency created from nothing”, and the price of coins is constantly manipulated.