Attorney and XRP representative John E Deaton has filed an amicus brief to support Blockchain firm Ripple in a different lawsuit, as per an update shared by another prominent member and lawyer James K Filan
In an exciting turn of events, John Deaton’s entry in Ripple’s California case is slated to keep the limelight on the blockchain firm even more.
For context, a section of XRP investors has filed a class action suit against Ripple and its CEO, Brad Garlinghouse. in 2018.
The plaintiffs, in the lawsuit, claimed that the company offered XRP as an unregistered security and demanded compensation for the losses they sustained. They are also asking the court to declare the token as a security.
Moreover, there are three lawsuits in the case of lead plaintiff Bradley Sostack as well, including ones from Zakinov, Oconer, and Greenwald. These lawsuits have since been combined into one.
According to Filan, the most recent submission by Deaton is filed on behalf of all 75,890 XRP holders in the SEC lawsuit who disagree with the plaintiff’s claims.
Furthermore, Deaton will also argue that the majority of investors believe that the token should be regulated rather than classified as a security, contrary to the move of the small number of XRP holders.
“John Deaton will argue that those small number of plaintiffs in Zakinov cannot fairly represent so many who disagree with them, including XRP Holders in places where the asset is not even considered a security,” Filan stated.
Ripple’s Class Action And The SEC Lawsuit Would Give A Clarity On XRP’s Classification
It should be noted that the proposed class action complaint covers all token sales, including secondary sales and sales done worldwide in nations where XRP has already been found not to be a security.
That said, fintech powerhouse Ripple is also in the final leg of its long-running legal fight with the US regulator the Securities Exchange Commission over the sale of XRP tokens.
Whatever may be the outcome, the case, alongside the SEC lawsuit, is expected to give a clear direction on the classification of the token.
Deaton who is an outspoken supporter of XRP has recently commented on the Ripple and SEC lawsuit.
In it, he stated that he has no doubt about the court ruling in favor of Ripple. “I have zero doubt that the current makeup of the U.S. Supreme Court will rule in favor of Ripple if it goes that far.”