Attorney Jeremy Hogan says the Ripple vs. SEC lawsuit is more complicated than what many XRP holders expect.
With recent events in the SEC vs. Ripple lawsuit going in the defendants’ favor, many XRP holders anticipate a win for the blockchain company. The positive anticipation is reflected in the price of XRP. The token has spiked by more than 9% in the past 24 hours following reports that a dozen companies and trade associations have submitted amicus briefs supporting the blockchain company. At press time, the cryptocurrency is changing hands around $0.49.
In a recent tweet, attorney Jeremy Hogan, a Partner at Hogan & Hogan law firm, burst the bubble of many XRP investors who think the lawsuit is about win or lose. Attorney Hogan said the lawsuit is more complicated than a win or lose.
He noted that every legal case is usually resolved in four ways: dismissal, settlement, summary judgment, and trial, adding that the Ripple lawsuit has already passed the “dismissal” stage.
Ripple v. SEC case: It's more complicated than "win or lose."
There are four ways a legal case is resolved:
1. Dismissal (we passed this stage)
3. Summary Judgment
The final resolution is trial but any "piece" of a case can be resolved before then. 1/
— Jeremy Hogan (@attorneyjeremy1) November 4, 2022
Ripple vs. SEC Lawsuit Has At Least 4 Pieces
Attorney Hogan said the Ripple case has at least four pieces, which could lead to about 24 different outcomes. One of the pieces in the lawsuit is the fair notice defense. Ripple has requested that the fair notice defense piece be moved to trial. The company hopes to leverage the Fair Notice at the trial stage if the other pieces do not go in its favor.
Aside from the fair notice defense, attorney Hogan said any piece of the case could be resolved at any time, while the other pieces left could proceed to trial.
The case is currently in the summary judgment stage, and the parties have filed their respective motions.
“At Summary Judgment, the Judge can rule on any piece of the case and leave the remainder for trial,” he added.
Possible Rulings in Different Pieces
He cited three possible rulings that Judge Torres could give in summary judgment. Per attorney Hogan, Judge Torres may rule that all XRP sales after Ripple’s On-Demand Liquidity solution are not securities while classifying all XRP sales before the ODL launch as securities.
“… The Judge could rule that no sales of XRP after the implementation of Ripple’s ODL “use” for XRP were securities and everything prior to that will be left for trial.
Another E.g.: The Judge could decide that ALL sales were securities and leave the issue of damages and scienter of the individual Defendants for trial. Also, yes, the Judge could rule no sales were of securities and that covers ALL the pieces (thought I’d throw that out there!),” he added.
According to attorney Hogan, Judge Torres could give a ruling requiring some time to determine whether it is a win or loss for Ripple.
Reacting to the recent analysis, the founder of Digital Perspectives asked XRP investors not to get too excited yet, as the case is far from being over.
— Digital Perspectives (@DigPerspectives) November 4, 2022