Ripple Update: Plaintiff withdraws class action lawsuit

On 22nd August, United States District Court of California issued a statement stating that Plaintiff Ryan Coffey has voluntarily taken back the class-action lawsuit he filed against Ripple Labs, Inc., XRP II, LLC, an ancillary of Ripple, and Brad Garlinghouse, CEO of Ripple earlier this year.

The Ryan Coffey case has been the ‘talk of the town’ for quite some time now. He initially filed the case on 3rd May 2018, alleging that the XRP tokens were fully generated even before the distribution began. The plaintiff further went on to accuse it as a “never-ending ICO.”

The lawsuit demanded remuneration for the plaintiff, awarding him for damages caused due to investing in XRP. It also demanded that XRP must be subject to the California Corporations Code. According to the Class Action Fairness Act, the defendants were able to remove class-action filed against them.

However, on 1st August, the plaintiff filed a motion to remand. On 10th August, the motion filed by him was ruled over by the court. The court order read:

“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.”

Recent developments in the case reveal that the plaintiff Ryan Coffey has voluntarily taken back the case, reasons for which are unknown. The court has officially dismissed the case as understood by the statement, which stated:

“NOTICE IS HEREBY GIVEN that pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i), named-plaintiff Ryan Coffey (“plaintiff”), by and through his counsel, voluntarily dismisses without prejudice the above-captioned action (the “Action”). This notice of dismissal is being filed with the Court before service by Defendant of either an answer or a motion for summary judgment. Plaintiff has not been offered and is not receiving any consideration for dismissing the Action.”

Twitter user Jeff tweeted:

“Aw. I think a ruling would have been better.”

Dr. RedsoXRP a Twitterati commented:

“In due time. However, Coffey being the “headliner” case and now choosing to end their trial says quite a bit. A win is a win is a win. No matter how big or small.”

Ripple has been in the news lately for several other reasons. In a recent Ask Me Anything [AMA] session, David Schwartz [CTO of Ripple], spoke about XRP’s status as a security, Bitcoin [BTC], and the future of Ripple and XRP.

During his session, he also spoke about Ripple’s products, especially xRapid. He also clarified questions on the transfer of value through XRP.