New York securities lawsuit against Ripple moved to California

by | Jul 28, 2020

Simmons v. Ripple Labs, one of the two cases currently open against Ripple claiming the company has violated the securities law, has been moved from New York to California.

Daniel Simmons filed a lawsuit against Ripple Labs, Bradley Garlinghouse, and XRP II LLC in March 2020, claiming at least $119, 206.22 plus interest, costs, disbursements, and reasonable attorney’s fees.

On July 22, both the plaintiff and the defendants filed a joint motion to transfer the case to the Northern District of California. The motion was approved on July 24 and the case was moved from U.S.D.C. Southern District of New York to the United States District Court – District of Northern District of California on the same day.

In the past, other similar cases like Greenwald v. Ripple Labs, Oconer v. Ripple Labs, and Bitcoin Manipulation v. Ripple Labs were consolidated with the oldest case (Zakinov v. Ripple Labs). It only makes sense for this case to get consolidated as well but no such motion has been filed at the time of writing.

Zakinov V. Ripple Labs

The Zakinov lawsuit is the oldest active case against Ripple, almost active for two years now. Ripple has recently filed for the fraud charges to be dismissed and asked for four additional documents to be taken into account by the court. One of the documents is the newly passed rule from the U.S. Bureau of Consumer Financial Protection’s Notice (CFPB) on Remittance Transfers under the Electronic Fund Transfer Act.

Bradley Sostack, the Lead Plaintiff in the Zakinov v. Ripple Labs, Inc. case, replied to Ripple’s motion to dismiss the fraud allegations by providing more than a dozen (alleged) misleading statements made by the defendants and claiming the CFPB rule should not be taken into account.

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