SEC v. Ripple: Recordings dispute “not looking good for Ripple”
The SEC’s bad timing for this motion to compel, however, might save Ripple from a turn of events.
Finance Feeds has recently reported on Ripple’s response in opposition to the SEC’s most threatening motion to date.
The plaintiff wants the Judge to compel Ripple to search and produce video and audio-taped recordings of the firm’s meetings.
This is meant to be used as evidence that the firm and individual defendants marketed and sold XRP as an investment contract with prior knowledge that this could be construed as a securities offering.
The SEC had complained of Ripple’s “flawed search” and explained the recordings are the best, unadulterated evidence of Ripple’s and the Individual Defendants’ contemporaneous views, treatment, and marketing of XRP during the relevant time period.
Those recordings will form the backbone of the SEC case
Attorney Jeremy Hogan has commented on this dispute and shared his expectation on what will be the Judge’s move given the relevance of the recordings for the SEC’s case and the lack of time for fact discovery in the lawsuit.
“Whatever it is that the SEC is referring to, I have a feeling that those recordings will form the backbone of the SEC case and that is why that whether it is able to gain access to more recordings is very important to the case and, so far, things are not looking good for Ripple on that front”.
Mr. Hogan reminded viewers that so much in the discovery disputes is in the judge’s discretion and that is why it is hard to call what the ruling will be.
“My instinct is that she is going to want to allow the SEC to be able to dig deeper further into Ripple’s sandbox and that feeling just comes from her prior rulings in this case. The problem is time”, he continued, adding that the discovery cut off is coming in early November.
“That might lead to a denial of the SEC’s motion but my best guess would be a limited granting of the motion that would allow the SEC to get more recordings but in a limited way”.
SEC’s bad timing could save Ripple from a turn of events
Ripple has argued that it has already produced the recordings as requested by the SEC, the fact discovery deadline is right around the corner and that the SEC’s “boil-the-ocean demand is flatly incompatible with the Federal Rules.
If attorney Jeremy Hogan is right, these arguments can only help limit the Judge’s order to compel Ripple to hand over the recordings, especially on the grounds that there is no time for an extensive search if the court wants to move forward with the lawsuit.
Given the current public perception, that Ripple has an edge against the SEC with its strong fair notice defense, the SEC’s bad timing for this motion to compel could save Ripple from a turn of events.