There was a new development yesterday regarding a long-standing old class action lawsuit against Ripple Labs for selling XRP as an unregistered security.
In the case in the US state of California, lead plaintiff Bradley Sostack and the case have been pending since November 2018. Plaintiffs want XRP to be classified as a security.
To prove that XRP is a security, lead plaintiff Sostack filed a request for the publication of all documents since January 2015, when Ripple contacted the US Securities and Exchange Commission (SEC). Sostack’s lawyer submitted a new document to the court and said they would like to see the conversations between Ripple and the SEC. The request includes all documents in the form of emails, text messages or other instant messaging, as well as communications from past settlements. Ripple claims that communication with the SEC is irrelevant, while Sostack is asking the court to force the company to provide documents. The request to the court states that the emails between the SEC and Ripple are very important because they dealt with the same problem as Sostack’s case.
Bradley Sostack sold $ 307,700 worth of Bitcoin and USDT between January 1-16, 2018, and purchased 128,978 XRPs. The investor sold them between January 9-17, 2018 for a total of $ 189,600 worth of Bitcoin and USDT. In the lawsuit filed, it was stated that the investor was at a loss of 118 thousand 100 dollars. Sostack claims that Ripple bought XRP because of its advertisements, the expressions used in these advertisements are unfounded, the company actually defrauded the investors and that he also harmed them.
The court hearing regarding the motion will be held on March 25, 2021.