The Court of the Northern District of California rejected the claim to return the lawsuit against Ripple Labs to a lower court initially formed by investor Ryan Coffey in the San Francisco court on May 3, 2018. Coffey wanted the trial to continue in lower courts in California and not be carried out by federal courts, Bitcoinist reports.
With his suit, Coffey claims to recover the losses he incurred as a result of investing in XRP. He claims that Ripple is manipulating the XRP course with unreasonable statements about the future price of the crypto currency, while violating California Corporate Law and "hiding the role of the security."
He also accuses Ripple CEO Bred Garlinghouse of misleading investors with statements aimed at promoting and enhancing the market rate of XRP. The plaintiff believes that XRP is not a fully decentralized crypto currency, which leads to the conclusion that Ripple may violate securities laws by distributing it.
Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court hereby DENIES plaintiff’s motion.
Meanwhile, two lawsuits against Ripple have already been transferred to federal courts in the United States. One of them was issued by a group of investors in late May. Its organizers also claim that they lost money, because they invested them in XRP under the influence of the company's statements, and assume that it can distribute unregistered securities. A third lawsuit with similar applications was filed in early July.