San Francisco based digital currency exchange, Coinbase has, reportedly, been accused by an Arizona citizen Jeffrey Berk, saying that the exchange hurt capitalists by permitted insiders to trade BCH (Bitcoin cash) before its listing on the exchange platform.
Vince Chhabria, a US District Judge from the Northern sector of California, terminated the lawsuit filed by Jeffrey, targeting Coinbase. The Judge dismissed the case saying that the complaint doesn’t adequately express the legal basis for his claims.
The dismissal verdict can be found here.
The original lawsuit was filed in March this year, in which Jeffrey claimed that, predictably, those who had been foreknown about BCH listing, instantly scooped up GDAX and Coinbase with sell and buy orders. Thus, they ended up cutting the liquidity down and acquiring Bitcoin Cash at fair prices at the same time. The market effect of all this was the unfair increase in the value of BCH for non-insider traders, once Bitcoin Cash was listed on the exchange. This, in turn, hurt the investors.
All of Jeffrey’s claims were dismissed with one exception. The judge said that Jeffrey and his lawyer are having one month to file a revised complaint.
The exception centers around a claim that Jeffrey made revoking the Commodity Exchange Act. Stephen Palley, a lawyer with corporate law company Anderson Kill P.C, said that Jeffrey lacks the standing to continue this kind of argument.
A Revised Complaint to Ensue
When further contacted to Linda Grant, lawyer of Jeffrey, she said that they will file a revised complaint within the deadline.
Though Coinbase managed to get the case temporarily dismissed, it later came along with a motion that the firm filed. The federal judge rejected the Coinbase’s motion urging arbitration, in which Jeffrey must sit for individual settlement rather than continuing the case in court.
Though Coinbase claimed that it has the right to urge for adjudication, the judge rejected the motion saying that the exchange can try it post Jeffrey’s revised complaint is filed. It also said that the adjudication clause must be applied to things that are under contract.
Palley said that the ruling is important to how the case may continue. Coinbase, on the other hand, has one more chance to file another motion to urge arbitration.
He also added that a dignified lawyer will no longer have a losing dispute when they have formerly lost on that point. And as a result, the case might then proceed through the court system.
However, Palley did not say anything particularly regarding the claims or merits made in Jeffrey’s lawsuit. He stated that if a complaint moves past a motion to discovery and dismiss and is declared as a class action, in most of the cases things get settled.