The XRP lawsuit, a protracted legal battle involving Ripple Labs and the U.S. Securities and Exchange Commission (SEC), has moved into its settlement phase.
Judge Analisa Torres, overseeing the case in the Southern District of New York, has established the framework for both Ripple and the SEC. Top lawyer James K. Filan shared an update on the case’s progress.
Permissible Discovery Terms
In a letter dated November 9th, the SEC informed the federal judge that both parties have mutually agreed that permissible discovery in the settlement negotiations will cover events that occurred before the SEC initially filed the complaint against Ripple, related to XRP.
The SEC has requested a 90-day window from the entry of the scheduling order to conduct discovery related to remedies. Ripple has expressed no objections to this proposal, provided it pertains to pre-complaint discovery.
Ripple specifically limits its consent to discoveries related to events that precede the SEC’s complaint.
Ripple’s Right to Object
The document emphasized that Ripple retains the right to oppose any post-complaint discoveries proposed by the SEC. If the SEC’s proposal and the extension of deadlines are approved, Ripple may even petition the court.
Additionally, Ripple has 45 days from the entry of the scheduling order to present a revised report by Anthony M. Bracco, who testified previously.
SEC Granted Deposition Permission
Within the next 90 days following the scheduling order, the SEC has been granted permission to depose Anthony M. Bracco. The court allows the SEC to decide whether to submit a rebuttal expert report or a declaration from a summary witness to counter Bracco’s work.
However, Ripple retains the right to object to any such reports, as mentioned in the letter to Judge Torres.
Third-Party Discovery Requests
The letter also clarifies that third-party discovery requests must receive court approval in line with the Federal Rules of Civil Procedure.
The scheduling order suggests a complex and challenging path ahead. This aligns with the previous predictions made by pro-XRP lawyer John Deaton, who anticipates that extensive negotiations will be necessary before reaching a final settlement. Deaton views a settlement of $20 million or less as a 99.9% success story for Ripple Labs.