Ripple has initiated a fresh legal maneuver in its ongoing battle against the Securities and Exchange Commission (SEC). The company has filed a motion, urging Magistrate Sarah Netburn to dismiss the new expert materials presented by the plaintiff in support of its opening remedies brief and final judgment entry.
During discovery, the SEC failed to submit a declaration from Andrea Fox, an assistant chief accountant in its enforcement division, as mandated by the court for the accounting analysis essential to the remedies aspect of the lawsuit. The absence of Fox’s declaration during this phase limited Ripple’s ability to respond adequately within the prescribed period.
Related article: XRP’s Standstill: Ripple CLO Reveals Delay in SEC Settlement Talks
Expert or Summary Witness?
Ripple contests the SEC’s characterization of Fox as a summary witness rather than an Expert Witness. The company argues that Fox’s involvement extended beyond mere summarization, involving an in-depth accounting analysis exceeding the scope of foundational materials. Thus, Ripple asserts that Fox should rightfully be classified as an expert witness, contrary to the SEC’s portrayal.
Related article: Ripple’s Potential XRP Sales to Settle SEC’s $2 Billion Demand
During discussions preceding the motion, the SEC opposed Ripple’s request to exclude Fox’s report. In response, both parties proposed a new schedule for further proceedings. It was agreed that the SEC would be granted five business days to officially file an opposition, with Ripple given three business days to respond thereafter.
Implications for Ripple’s Defense Strategy
This latest legal maneuver by Ripple comes in anticipation of its opposition to the SEC’s opening remedies brief. The company’s stance remains firm, advocating against the imposition of a civil penalty exceeding $10 million, in stark contrast to the SEC’s staggering request of $876.3 million. Additionally, Ripple contends that the SEC has failed to sufficiently justify the imposition of sanctions and disgorgement. It’s worth mentioning that attorney James K. Filan, known for his support of XRP, has shared both filings today.
Ripple’s legal battle against the SEC continues to unfold with strategic maneuvers and counterarguments. The exclusion of the SEC’s Expert Witness Report, coupled with Ripple’s steadfast defense strategy, underscores the intensity and complexity of the ongoing litigation.
As both parties engage in legal jousting, the outcome of this high-stakes clash remains uncertain, with significant ramifications for the cryptocurrency industry at large.
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