Ripple claims that the main plaintiff in the case in which the company is accused of securities fraud cannot prove the falsity of brad Garlinghouse’s statements about XRP in 2017.
The court document, filed in the district court of Northern California, was attached to the case in which Ripple is accused of not registering XRP as a security with the securities and exchange Commission (SEC) and using false information to deceive investors, which led to the growth of the XRP rate.
Ripple’s lawyers said that the charges of the main plaintiff, Bradley Sostack, concerning ripple’s alleged misrepresentations of information regarding XRP “are based on unsupported conclusions.”
Sostak could not explain why statements made by Ripple CEO brad Garlinghouse in 2017 represent false information. Lawyers also noted Sostak’s desire to “diligently avoid precise definitions” in his charges.
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. At the same time, Garlinghouse stated that he adheres to a strategy of long-term investment in XRP, and the sale of coins, according to the claims, contradicted his statements.
In June, Ripple sent
a court motion to dismiss a lawsuit filed by investors against brad Garlinghouse due to lack of evidence of fraud. A month later Sostak filed an objection
against the motion, stating that the lawsuit complies with the requirements of the US fraud law and reveals “more than a dozen false or misleading statements made by Ripple and its CEO.”