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Important Ripple v. SEC Lawsuit Update: Details

Important Ripple v. SEC Lawsuit Update: Details

CryptopotatoCryptopotato2024/01/26 11:19
By:Dimitar DzhondzhorovMore posts by this author

Ripple received green light to react to the SEC’s latest attack.

TL;DR

  • The SEC has escalated its legal case against Ripple, demanding financial documents, which the firm contests as irrelevant.
  • The company, having secured several partial legal victories in 2023, prepares for a trial scheduled for April 23, 2024.

Another Confrontation

After a prolonged period of inactivity, the legal battle between the United States Securities and Exchange Commission (SEC) and Ripple escalated this month. First, the regulator requested an order compelling the company to hand over its financial statements for 2022 and 2023 and its post-complaint XRP sales contracts.

Ripple had until January 17 to comply and asked the deadline for a response to be extended to January 19. It later opposed the SEC’s demand, claiming that those records were untimely and unrelated to the case. 

This caused the watchdog to  re-file the motion, arguing that the documents could provide vital information regarding the financial condition of Ripple over the years and show whether it has violated certain securities laws.

The company’s attorneys  reacted with a motion to file a sur-reply letter, seeking “to correct a significant factual mischaracterization made by the SEC.”

“The Court would benefit from the sur-reply letter because it will clarify the issues in dispute and allow the Court to rule on an accurate record,” Ripple’s defense team added.

The US lawyer and former federal prosecutor – James Filan –  revealed  that the US magistrates have allowed the firm to go forward. 

The Approaching Dates

The latest clash between the parties comes less than three months before their trial (scheduled for April 23, 2024). Ripple seemingly has the upper hand, securing three partial court victories throughout 2023.

The first occurred in July when Judge Analisa Torres  ruled that the company’s programmatic sales to secondary trading platforms did not constitute offers of investment contracts. More details can be found in the video below:

Shortly after, the magistrates dismissed the SEC’s intention to appeal the decision, while Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen were  cleared  of all claims brought by the watchdog.

The two organizations must comply with the necessary procedures before meeting in court. The SEC  must  file its brief with respect to remedies by March 13, 2024, whereas Ripple must file its opposition by April 12, 2024.

 

 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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