Judge Denies Effort to Move XRP Investor Lawsuit to Lower Court

A U.S. district judge has denied an investor’s effort to move a lawsuit against payments firm Ripple to a lower court. Judge Phyllis Hamilton of the Northern District of California denied Ryan Coffey’s motion to remandhis suit against Ripple Labs and affiliated entities back to the Superior Court of San Francisco after Ripple escalated the suit to the United States District Court level, court documents published on Friday reveal. Coffey sued Ripple earlier this year claiming that the XRP cryptocurrency is a security controlled and issued by the firm. Coffey claimed in his motion to remand that “‘cases arising under’ the Securities Act can be brought in state court and are expressly non-removable from state court.” However, Hamilton noted that the precedents and rules Coffey cited do not necessarily apply, and a federal court can supersede the state court regardless of whether XRP is a security because of the “nationwide” nature of the class-action lawsuit.

Like this article? Take a second to support us on Patreon!