Ripple (XRP) Further Supports Motion to Dismiss SEC’s Supplemental Expert Report.
Ripple and Individual Defendants Brad Garlinghouse and Chris Larsen are still not in support of the Securities and Exchange Commission’s supplemental expert rebuttal report from Dr. Albert Metz.
The blockchain company and its executives have recently filed a letter supporting their previous motion to strike Dr. Metz’s supplemental expert rebuttal report.
#XRPCommunity #SECGov v. #Ripple #XRP Ripple, Chris Larsen and Brad Garlinghouse have filed a Letter in further support of their Motion to Strike the SEC's late-filed Metz Supplemental Expert Report. pic.twitter.com/sQURMxaRjs
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 24, 2022
Ripple’s Reason for a Dismissal
According to the letter, Ripple wants the supplemental expert report dismissed because Dr. Metz, in his initial report, failed to disclose a complete statement of all opinions that he intended to express as mandated by the Civil Procedures rules 26(a)(2)(B)(i), which reads:
“The party is not allowed to use such information or witness to supply evidence at a trial unless the failure is substantially justified or it is harmless.”
Ripple noted that the securities regulator has not proven that its violations are justified or harmless based on the rules.
Furthermore, the fintech firm stated that a violation of Rule 26 would result in a discovery dispute, which Judge Analisa Torres has addressed in previous court sittings.
Ripple further argued that with the SEC filing an additional expert report when Judge Torres did not permit such, a plot by the securities regulators to seek unfair advantage in the lawsuit.
Lastly, since the court routinely strikes late-filed expert reports, Ripple believes that the same measure should apply to the supplemental expert report of Dr. Metz, which was untimely filed.
Going forward with the supplemental expert report from Dr. Metz would only reward the SEC for its “gamesmanship” and further prejudice the defendants, Ripple said.
SEC Stand on Ripple’s Motion
Recall that the Securities and Exchange Commission had argued in its letter that Ripple had no right to request the dismissal of its supplemental expert report, adding that the Judge should decide the matter.
While both parties are still on the issue of whether to strike the supplemental expert report, the court earlier granted a one-week extension to the SEC’s request to establish a discovery schedule for the Individual Defendants.