Ripple Labs hired representatives of the international law firm Debevoise & Plimpton Mary Jo White and Andrew Cerezni, entrusting them the right to defend their interests in a collective lawsuit filed against the company in May this year. This is reported by Law.com.
Mary Jo White is known, among other things, to be the chairwoman of the US Securities and Exchange Commission (SEC) between 2013 and 2017.
In May, an XRP investor filed a lawsuit against Ripple, accusing the company of violating the federal securities law, as well as the laws of the state of California, when it launched a public sale of tokens.
The defendant is also the CEO of Ripple Brad Garlinghouse. According to the plaintiff, Ripple actually conducted an "endless ICO", which should be classified as the sale of securities under the provisions of the US Securities Act and the California Corporate Code.
The lawsuit itself is classified as collective, as it is filed on behalf of all investors who purchased the XRP token after January 1, 2013, that is, from the moment Ripple Labs was founded.
According to court documents, the case was transferred from a California state court to a federal court in the Northern District of California.
Like any civil proceeding, we'll assess the merit or lack of merit to the allegations at the appropriate time. Whether or not XRP is a security is for the SEC to decide. We continue to believe XRP should not be classified as a security.
Head of corporate communication, Ripple
Meanwhile, a representative of Ripple said that at the time of filing the suit, the SEC did not determine whether the XRP token is a security.