Ripple, its CEO Brad Garlinghouse and co-founder Chris Larsen have filed an objection with Magistrate Judge Sara Netburn to the SEC’s motion for partial reconsideration and clarification of the ruling concerning the SEC‘s DPP.
BAM!
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 25, 2022
The company says that the regulator is seeking reconsideration of the matter because it is dissatisfied with the court’s ruling.
“The SEC does not contend that the standards for reconsideration have been met in this case. Instead, the Commission is attempting to restate the question that was thoroughly considered over the course of the year, but this time relying on new theses,” the letter states.
DPP is a legal principle that allows the SEC to withhold disclosure of documents or testimony, citing the confidentiality of information and sources.
Earlier the regulator moved to disclose notes made by Matthew Estabrook — the adviser to former Commissioner Elad Roisman. The notes contain information about his meeting with Garlinghouse in 2018.
At the same time, the Commission agreed to submit the documents to Netburn for in-camera review.
The SEC has submitted the notes to Magistrate Judge Netburn for in camera review.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 24, 2022
The SEC’s term of art suggests that at this stage, the defendants will not have access to the information; if the judge finds them material to the proceedings, they will be disclosed at an open hearing.
Ripple moved to disclose Roisman’s notes in early February 2022. In December of last year the official announced that he would leave his post at the regulator.
The company argues that these documents are not subject to the DPP, and should therefore be turned over to the court and released to the public.
According to attorney Jeremy Hogan, Ripple’s actions could deal a major blow to the SEC’s strategy.
Wow. I expected Ripple to come out swinging and this brief did NOT disappoint. #mattsolomon
This is the hardest hitting brief thus far in the litigation — and rightfully so.
The SEC has spun itself a tangled web here and I don’t expect the judge to help them out of it. https://t.co/LM7SXkq273
— Jeremy Hogan (@attorneyjeremy1) February 25, 2022
“Wow. I expected Ripple to come out swinging, and this brief did not disappoint. This is the hardest-hitting filing thus far in the litigation — and rightfully so. The SEC has spun itself a tangled web here and I don’t expect the judge to help them out of it,” Hogan wrote.
Last week Ripple disclosed the advice provided to it by the law firm Perkins Coie in 2012. The documents asserted that the XRP token is not a security.
Earlier, on February 17 the regulator filed a motion to redact the draft speech of the former head of the Division of Corporate Finance, William Hinman from 2018. The community speculated that the reason lay in its substantial revisions.
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