The long-running legal tussle between Ripple Labs and the SEC has entered a crucial phase as both parties put up finishing touches to strengthen their case. Amid these developments, legal experts have weighed in on the possible outcome.
Reacting to recent case proceedings, pro-XRP lawyers Jeremy Hogan and Bill Morgan think Ripple will lose its motion to strike SEC’s new expert materials.
The Contentious Motion to Strike Expert Testimony
The latest point of contention revolves around Ripple’s motion to strike Andrea Fox’s testimony. Fox is a certified public accountant working with the SEC’s Enforcement Division.
Fox’s declaration, which summarized Ripple’s audited financial records, was included in the SEC’s opening brief regarding potential remedies. This strengthened the agency’s case for seeking an injunction and imposing punitive penalties against Ripple.
Ripple argues that Fox should have been designated as an expert witness and that her testimony should have been disclosed during the discovery phase. This would have allowed Ripple the opportunity to depose her and scrutinize her qualifications and analysis.
However, the Commission maintains a different stance. It argues that Fox is merely a summary witness whose role was to synthesize existing financial records to aid the court’s understanding, not for expert opinions.
In its recently filed reply brief, Ripple maintained its stance, asserting that Fox’s declaration constitutes expert testimony. It insisted that the SEC failed to adequately rebut the legal precedents cited to support the motion to strike.
Additionally, Ripple contended that even if Fox is deemed a summary witness, the SEC was still obligated to disclose her identity. This was to be done before the end of the discovery phase, which was related to potential remedies, according to the parties’ agreement and court scheduling order.
Ripple’s reply brief has garnered reactions from prominent legal experts in the cryptocurrency space. Many of them have shared their insights on the potential outcome of the motion.
Legal Experts Weigh in an Uphill Battle for Ripple
Seasoned defense lawyer James K. Filan shared Ripple’s reply brief on social media, prompting responses from attorneys well-versed in the case’s complexities.
Attorney Bill Morgan acknowledged that while Ripple might lose the motion to strike, the judge could agree that Fox provided some expert evidence in her report. This will allow Ripple to depose her and potentially undermine the credibility of her testimony.
Also, attorney Jeremy Hogan speculated that the SEC will likely prevail on the strike motion. However, he noted that if the court considers Fox as an expert witness, her declaration may not be struck outright,
He stated that Ripple would be allowed to depose her, potentially exposing flaws or biases in her analysis. The court’s decision on the motion to strike Fox’s testimony could have far-reaching implications for the broader case.
If Ripple’s motion is denied, the SEC could rely on Fox’s declaration to bolster its arguments for imposing penalties and injunctions against Ripple. This could potentially deal a significant blow to the company’s defense.
Conversely, if the court agrees with Ripple’s position, strikes Fox’s testimony, or orders her to be deposed, it could weaken the SEC’s case regarding potential remedies. This decision will allow Ripple to challenge the credibility of the agency’s evidence.
As the legal battle unfolds, the crypto community eagerly awaits the court’s ruling on the motion. The SEC’s reply to Ripple’s opposition to its opening remedies brief is expected on May 6, 2024.
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