- The XRP lawsuit has progressed to the settlement phase, with Judge Analisa Torres setting strict ground rules for both Ripple and the SEC.
- The discovery terms for the settlement include pre-complaint events, with Ripple retaining the right to oppose post-complaint discoveries proposed by the SEC.
Settlement Phase in the XRP Lawsuit
The ongoing lawsuit involving Ripple Labs and the United States Securities and Exchange Commission (SEC) has entered a decisive settlement phase. Presiding Judge Analisa Torres of the Southern District of New York has meticulously established the ground rules for this critical stage.
Defining the Discovery Terms
The permissible discovery, as agreed upon by both parties and articulated in the SEC’s letter to Judge Torres dated November 9, is confined to events that occurred before the SEC’s initial complaint against Ripple regarding XRP. This limitation underscores a strategic focus on the genesis and early development of the dispute.
Ripple’s Position on Discovery Terms
Ripple has agreed to these discovery terms, provided they adhere strictly to pre-complaint events. The fintech firm emphasizes its consent to discoveries solely related to activities preceding the SEC’s complaint. Notably, Ripple maintains the authority to challenge any discoveries relating to post-complaint events and may appeal to the court if necessary.
Timelines for Ripple and the SEC
Within the outlined framework, the SEC seeks a 90-day period from the entry of the scheduling order for conducting related discoveries. Ripple, in parallel, has been allocated 45 days from the scheduling order to submit an updated report by Anthony M. Bracco, who had previously testified in the case.
Deposition and Rebuttal Processes
The SEC is granted permission to depose Bracco within 90 days following the scheduling order. The regulator may also present a rebuttal expert report or submit a summary witness declaration to counter Bracco’s findings. Ripple retains the right to object to any such reports or declarations.
Adhering to Court and Procedural Rules
In line with the Federal Rules of Civil Procedure, any requests for third-party discovery will require court approval. This stipulation ensures adherence to procedural norms and judicial oversight throughout the settlement process.
The schedule laid out for the settlement phase of the XRP lawsuit indicates a complex and potentially protracted legal journey ahead. This trajectory aligns with predictions from legal experts like John Deaton, who anticipate extensive negotiations before reaching a final settlement. A potential settlement of $20 million or less is seen as a significant victory for Ripple Labs in this high-profile legal battle.