Bradley Sostack, the Lead Plaintiff in the Zakinov v. Ripple Labs, Inc. case, has replied to Ripple’s motion to dismiss fraud allegations. Ripple moved to dismiss all fraud allegations (claims four, six, and seven) against it on June 8 claiming the plaintiffs had not demonstrated how a series of supposedly fraudulent statements made by Garlinghouse and Ripple employees were anything of the kind.

Ripple also filed four documents for judicial notice by the court: (1) a Notice of Final Rule from the Bureau of Consumer Financial Protection (CFPB) published in the Federal Register, (2) a submission by Ripple to the Conference of State Bank Supervisors, (3) an article from CNBC, and (4) a tweet and linked article from Ripple.

Plaintiff’s response

The plaintiffs responded by opposing the Court taking notice of the
Notice of Final Rule from CFPB, claiming that defendants fail to establish that any factual assertions contained in the document cannot reasonably be questioned and also fail to specify which factual assertions within the document they ask the Court to take judicial notice of.

docket-entry-104

The CFPB rule indicates “the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers” as an example of progress in the remittance transfer market. Moreover, the CFPB states that expanded adoption of SWIFT’s gpi product or Ripple’s suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.

Fraud allegations

Sostack also responded to Ripple’s motion to dismiss the fraud allegations by providing more than a dozen (alleged) misleading statements, particularly pleading who made them when they were made,
and where.

Docket-Entry-105

The hearing for the motion to dismiss the fraud allegations is set for August 26.

Liked it? Take a second to support XRPArcade on Patreon!
Categories: Lawsuit