Ripple argues that the main plaintiff in a case in which the company is accused of securities fraud cannot prove Brad Garlinghouse’s 2017 XRP claims were false.
A court document filed with the Northern California District Court was filed in a 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 defraud investors, which led to an increase in the XRP rate.
Ripple’s lawyers said the allegations of main plaintiff Bradley Sostack regarding Ripple’s alleged misrepresentation of XRP information were “based on unsubstantiated inferences.”
Sostak was unable to explain why statements made by Ripple CEO Brad Garlinghouse in 2017 are false. Lawyers also noted Sostak’s tendency 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 have added new claims to the lawsuit, claiming that Brad Garlinghouse sold 67 million XRP during 2017. At the same time, Garlinghouse said that he adheres to a strategy of long-term investments in XRP, and the sale of coins, according to claims, contradicted his statements.
In June, Ripple filed a motion to the court to dismiss a lawsuit filed by investors against Brad Garlinghouse for lack of evidence of fraudulent activity. A month later, Sostak filed an objection to the petition, claiming that the suit met the requirements of the US fraud law and exposed “more than a dozen false or misleading statements made by Ripple and its CEO.”