XRP lawsuit: Ripple “takes gloves off” in SEC beating

Rick Steves

Ripple is pressuring the court to deny the SEC’s constant delays over the Hinman documents.

The defendants in the SEC v. Ripple case, represented by counsel Matthew C. Solomon, have filed a reply brief in opposition to the SEC’s intention to further argue that the Hinman speech-related documents are protected from disclosure by the attorney-client privilege.

The incident follows a 7-day extension request from Ripple in order to reply to the SEC’s objection to the court’s ruling over the Hinman documents.

In reaction to the request, the SEC wants to be able to respond to Ripple’s reply, further extending the issue while the court enters the summary judgment briefing schedule.

Prominent law experts that have been following the XRP lawsuit have commented that Ripple “took the gloves off” as its counsel came out “swinging”.

Ripple bashed the SEC for repeatedly delaying the production of the documents. “The SEC requests leave to file what they term a “reply,” but in fact this would be at least the SEC’s 6th filing in opposition to Defendants’ August 10, 2021 motion to compel […] It is therefore, at best, a sur-reply.

Ripple is fed up with SEC’s delays over Hinman

“The SEC’s request to file such a sur-reply, unsupported by any justification and before even seeing Defendants’ response to their latest filing, is both inappropriate and premature”, counsel Matthew Solomon stated.

The Ripple defense added that the Court has twice overruled the SEC’s improper deliberative process privilege objections, but the SEC continues to withhold all documents related to a former SEC official’s June 14, 2018 speech even despite the end of fact and expert discovery.

“The SEC now claims, in effect, that the last year of briefing, oral argument, the Court’s decisions, and their motion for reconsideration, were all an academic exercise because it turns out that the documents (every single one of them) are actually privileged attorney-client communications.”

As parties are on the eve of filing motions for summary judgment, a further delay is prejudicial to Defendants, the letter argued, adding that this issue is ripe for final resolution.

Solomon comes out swinging in opposing SEC request to file a reply brief”, said securities lawyer James K. Filan on Twitter.

FINALLY I feel like Ripple has taken the gloves off and is talking about how ridiculous the SEC’s litigation tactics surrounding the “Hinman emails” are. The judge may still allow the sur-reply but at least Ripple is calling out the delay tactics strongly”, said attorney Jeremy Hogan, Partner at Orlando-based Hogan & Hogan law firm.

The whole SEC v. Ripple has been frustrating for the defendants and XRP holders. Ripple general counsel Stuart Alderoty called it a “rug pull”.

 

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