The plaintiffs were given a month to file a second application against the blockchain startup regarding violations of the securities law
The case against the blockchain startup Ripple for violating US securities laws can be reopened, judge Phyllis Hamilton of the Northern district of California has ruled. He gave the plaintiffs permission to submit a second application within 28 days, coindesk reports.
Earlier, the blockchain startup sent a petition to dismiss the claim due to the fact that it was filed after five years since the ICO was held in 2013. The court rejected the application, but at the same time did not recognize the personal responsibility of the head of Ripple, Brad Garlinghouse, for the claims and the fact that the company provided false information about the promotion of the cryptocurrency.
"Although the defendants acknowledged holding an ICO in 2013 and selling the XRP token...their actions at the time did not indicate the direction of XRP token sales to the General public," the court ruled.
The trial against Ripple is in its second year. Several investors filed a joint lawsuit against the blockchain startup, claiming that an unregistered security was sold to them as part of the ICO. Ripple called all the charges argumentless extortion.