Ripple Issues Statement After XRP Lawsuit

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Brad Garlinghouse (Courtesy: Twitter)
Brad Garlinghouse (Courtesy: Twitter)

Ripple has issued a statement after XRP filed a lawsuit accusing the firm of security fraud. The document, filed at the Northern California District Court, comes in response to accusations Ripple failed to register XRP as a security with the U.S. Securities and Exchange Commission (SEC) and used deceitful tactics to defraud investors leading to false inflation in XRP’s price.

Ripple’s legal team said lead plaintiff Bradley Sostack’s allegations relating to Ripple’s purported misrepresentations about XRP were based on “unsupported leaps of logic.”

Sostack has not been able to explain why the alleged statements made by Garlinghouse are false, they claim.

Ripple’s team also took aim at Sostack’s “artful pleading,” saying he “studiously avoids absolutes” in his allegations.

The class-action lawsuit was originally filed against Ripple and Garlinghouse in May 2018.

As one example in the original complaint, plaintiffs allege Garlinghouse had stated on Dec. 14, 2017, he was “very, very long XRP as a percentage of my personal balance sheet.”