SEC Files Motion to Redact Portions of Key Documents in Ripple Lawsuit.

As sequel to a January 13, 2022 ruling on the deliberative process privilege (DPP), the Securities and Exchange Commission (SEC) has filed a motion to redact some portions of selected meetings’ notes between the agency’s third parties. 

According to the United States securities regulator, the handwritten portions of the notes it plans to conduct a redaction on are protected by the deliberative process privilege. 

“The handwritten portions in question expressly reflect either (1) the authors’ thoughts regarding subject matters discussed during meetings and/or (2) deliberations among SEC staff during meetings,” excerpts of the motion read. 

The Securities and Exchange Commission noted that it is because of the aforementioned reason it has “respectfully requests that the Court permit the proposed redactions.”

Some of the proposed redactions include Valerie Szczepanik’s notes from a February 2014 meeting, Michael Seaman’s note of an April 2018 meeting, Jonathan Ingram’s notes of the same meeting. 

The decision to grant or deny the SEC’s request for redaction will be left to Judge Sarah Netburn. 

Court Order on DPP 

On January 13, 2022, a court order granted, in part, and denied, in part Ripple and Individual Defendants’, Brad Garlinghouse and Chris Larsen, motion to compel the SEC to produce documents that the plaintiff claimed are protected by the DPP. 

The ruling, which seemed like a major win for Ripple, came after back and forth motions that lingered for over a year. 

While the court acknowledged that the DPP is qualified, it must yield to a higher interest where necessary. 

Despite the acknowledgment of the DPP, the court noted that it will determine whether disclosure of important documents is appropriate based on the relevance of the documents sought to be protected and the seriousness of the litigation among others. 

The SEC v. Ripple lawsuit has continued to linger for more than a year, with new developments unfolding by the day. 

Yesterday, the court granted the SEC’s request to extend the deadline to produce a discovery schedule.  

Ripple v. SEC: SEC Records Slight Win as Its Request for a Deadline Extension Is Granted. 

A U.S. Federal High Court has granted the Securities and Exchange Commission’s request to extend the March 23, 2022 deadline for parties to establish a discovery schedule for the Individual Defendants, Chris Larsen, and Brad Garlinghouse.  

The court’s decision was communicated via text to the parties as published on Twitter by attorney James K. Filan, which read: 

“The SEC shall inform the Court of its position on whether any additional discovery is required within a week of filing the Individual Defendants’ answer.” 

#XRPCommunity #SECGov v #Ripple #XRP The SEC's request for an extension of time was GRANTED in a Text Only Order. It stated: “The SEC shall inform the Court of its position on whether any additional discovery is required within a week of the filing of the Individual Defendants'

— James K. Filan ???? (@FilanLaw) March 23, 2022

What’s Next?

Furthermore, the involved parties are mandated to meet for a briefing schedule for the purpose of summary judgment motions. After the meeting, a Joint Proposed Schedule is expected to be submitted by the parties no later than a week after the securities regulator’s submission. 

Following the development, the Individual Defendants’ answer to the SEC’s complaints is due to be submitted on April 8, 2022, while the Securities and Exchange Commission’s position on whether there is a need for any additional discovery is also due on April 15, 2022. 

Similarly, the Joint Proposed Scheduling Order as mandated by the court is also expected to be submitted latest on April 22, 2022. 

It is worth noting that regardless of the deadline attached to the aforementioned events, the Individual Defendants’ answer to the SEC’s complaints would be the primary determinant of the deadline for both the SEC’s position on additional discovery and the Joint Proposed Scheduling Order. 

For instance, should the Individual Defendants provide answers to the SEC’s query on April 1, 2022, the deadline for the Securities and Exchange Commission’s position on additional discovery will be shifted to April 8, 2022, while the Joint Proposed Scheduling Order will be due on April 15, 2022. 

Investors Hopeful Amid SEC’s Incessant Delays

As reported, the SEC had earlier requested a one-week extension to the deadline to be able to propose a discovery schedule for the Individual Defendants. Ripple rejected this plea. 

Industry players have accused the agency of employing delay tactics to frustrate the defendant. 

Not discouraged by the SEC’s delay tactic, Ripple enthusiasts are still keeping faith that the lawsuit’s outcome will be in the blockchain company’s favor.