Ripple Success: Two Fraud Allegations Dropped; XRP Lawsuit Continues
Ripple and XRP have been making headlines for a really long time now, but such popularity also brought a lot of shade around the two entities.
XRP has been accused of centralization and being a security, but Ripple’s Brad Garlinghouse always made sure to kill the rumors.
More than that, you probably know that Ripple has also been involved in more lawsuits, and now, new details pop up.
Ripple sees a small victory
The online publication the Daily Hodl reported that the U.S. District Court for the Northern District of California has ruled to dismiss two fraud allegations against Ripple.
On the other hand, it gives the green light to proceed on the suit regarding Ripple’s violations of the California Corporations Code.
Just in case you don’t know, the three fraud allegations are part of a class-action lawsuit against Ripple that was initially filed by investor Vladi Zakinov in November 2018.
“In a court record dated October 2nd, 2020, and signed by judge Phyllis J. Hamilton, the court has decided to dismiss the charges against the San Franciso startup for violation of sections 17500 and 17200 of the California Business and Professions Code,” according to the online publication.
The court documents reveal the fact that the plaintiff argued that Garlinghouse made statements that “conflated the adoption of enterprise solutions with the adoption of XRP even if Ripple’s enterprise clients were not adopting the digital asset.”
The court granted the motion to drop the charge and said that the claim is unfounded.
There’s also a separate claim that alleged the fact that Garlinghouse made statements that “falsely associated the adoption of enterprise solutions with the adoption of XRP.”
This claim was dismissed as well, and the court cited lack of merit.
We recommend that you check out the complete official notes in order to learn all the available details.
In other news, you might want to check out what could boost XRP these days.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.