Ripple files a motion to exclude the expert testimony of one of SEC’s experts.
Prominent blockchain company Ripple has filed a redacted motion to exclude the testimony and accompanying exhibits of SEC Expert 2 from the public docket.
While the lawsuit centers on whether Ripple’s XRP sales constituted an investment contract, the Defendants said the expert denied having any opinion on whether Ripple offered unregistered security.
Why Ripple Wants the Testimony Excluded
Ripple noted that instead of giving an opinion on whether its XRP sales constituted security, SEC Expert 2’s testimony offered a tutorial to the jury on the registration and disclosure of security offerings under the SEC Act of 1934.
The leading blockchain company said the testimony is entirely irrelevant to the main issues the SEC must prove in the lawsuit.
“His testimony has no bearing on the questions before the Court. It would merely confuse and distract the jury, inviting them to reach a verdict on the improper basis of whether Defendants’ XRP distributions should be considered investment contracts as a matter of policy rather than whether they were investment contracts as a matter of fact and law,” Ripple added.
SEC Expert 2 also impermissibly assumes that XRP was an investment contract by opining that Ripple deprived investors of key material disclosures.
Other Reasons for Backing Ripple’s Request
The blockchain company requested that the testimony of SEC Expert 2 needs to be excluded for several reasons. According to Ripple, the expert needs to gain experience with digital assets. Furthermore, the expert did not analyze the mix of information available to XRP purchasers, which Ripple sees as the starting point for a materiality analysis under the Second Circuit and Supreme Court law.
“As such, [SEC Expert 2] opinions are nothing more than a series of ungrounded assertions and are therefore inadmissible. The Court should exclude [his] testimony in its entirety,” Ripple concluded.