SEC Lawsuit against RIPPLE

The United States Securities and Exchange Commission (SEC) requested the court to grant an extension of the deadline for complete discovery in their lawsuit against Ripple Labs Inc. and its top executives.

The Court Extends the Deadline of SEC Lawsuit against Ripple to January 2022.

The United States Securities and Exchange Commission (SEC) requested the court to grant an extension of the deadline for complete discovery in their lawsuit against Ripple Labs Inc. and its top executives. The Court has agreed to the SEC request and consequently pushed back the deadline to January 14, 2022. 

The SEC charged Ripple executives Bradley Garlinghouse (current CEO), Christian Larsen (former CEO, executive chairman of its board, and co-founder), and Ripple Labs with raising more than US $1.3 billion through an unregistered digital asset securities offering.

Reports say that the order document for the court proceedings says:

"The parties acknowledge that there are likely at least 14 expert witnesses that will be deposed. The Defendants believe these depositions can reasonably be conducted within 18 business days given the resources available to the SEC. "

At the time of the SEC’s first-ever request to push back the deadline, the lawyer for Ripple Labs agreed to postpone the deadline for the expert rebuttal report. However, it should be underscored that the defendants didn’t concede to postponing the discovery deadline. 

Ripple Labs had claimed at that time that the latter’s deadline extension beyond December 10, 2021, would likely affect the summary judgment motion’s briefing schedule. They went on to underscore that further delay in the lawsuit filed by the SEC against Ripple Labs and its top executives will seriously harm the interests of both the defendants and the holders of XRP coins. 

While not yielding to the requests of Ripple Labs, the court order said:

"While the Court recognizes that both parties have dedicated substantial resources to prosecute this case, given the pending motions to dismiss and strike, and the previous adjournment of any deadline to file a motion for summary judgment, the additional time sought by the SEC will not affect the schedule to resolve this case."

The court also believes that additional time will help both the SEC and Ripple in completing outstanding fact discovery and will finally help in properly preparing for expert depositions.