SEC Appeals for Extension in XRP Lawsuit Remedies Briefing Schedule

In the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc., the SEC has formally appealed for an adjustment to the existing schedule for remedies-related briefing. The formal request, addressed to Judge Analisa Torres in the Southern District of New York, seeks a one-week extension across multiple deadlines, citing “good cause” under Federal Rule of Civil Procedure 16(b)(4) to justify the proposed modifications.

Extension Sought in XRP Lawsuit Deadlines

Filed on February 27, 2024, the SEC’s petition details a proposed extension for the deadlines associated with filing briefs related to the remedies phase of the case. Specifically, the SEC aims to move its deadline for submitting the opening brief on remedies from March 13 to March 22, 2024.

Consequently, Ripple’s deadline for presenting its opposition brief would shift from April 12 to April 22, 2024, and the SEC’s deadline to submit its reply brief would extend from April 29 to May 6, 2024.

In the submitted letter, Jorge G. Tenreiro, representing the SEC, noted, “No party has previously sought an extension of the remedies-related briefing schedule. Ripple has consented to the SEC’s request.” This mutual agreement underscores the collaborative effort required to navigate the procedural intricacies of the case.

The SEC justified its request by citing a recent dispute over the scope of discovery, which was only resolved on February 5, 2024. On that day, Ripple was directed to disclose financial statements to assess potential securities law violations stemming from post-lawsuit institutional XRP sales.

The SEC contends that the recent delay necessitates a one-week extension of the remedies-related discovery period. Jorge G. Tenreiro explained, “Despite these efforts, a dispute between the parties regarding the proper scope of discovery lingered until February 5, 2024,” underscoring the unforeseen impact on the briefing schedule.

#XRPCommunity #SECGov v. #Ripple #XRP @SECGov has requested a change to the remedies briefing deadlines, asking that: (1) the @SECGov’s opening brief deadline be extended to March 22, 2024, (2) @Ripple’s deadline to file its opposition brief be extended to April 22, 2024, and (3)… pic.twitter.com/ZvCixNdLMm

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 28, 2024

Furthermore, Tenreiro emphasized the SEC’s diligence and the mutual consensus between the involved parties as crucial factors supporting the extension request. He argued that it allows for a more comprehensive review of recently produced documents and the finalization of the briefing. “The SEC has been diligent in completing remedies-related discovery and briefing,” he noted, and pointed out that “Ripple, in consenting to the SEC’s request, would not be unfairly prejudiced by the SEC having an additional nine days to file its opening brief.”

The SEC’s letter also clarified that the imminent trial does not influence the extension request, given the absence of a pending trial in the remaining proceedings. This detail underscores the procedural nature of the extension request, indicating a focus on process rather than any substantive delay in resolving the case itself.

In the context of the XRP lawsuit, the “remedies” phase pertains to potential actions or penalties that the SEC may impose on Ripple due to alleged illegal activities, particularly concerning the unregistered sale of XRP.

John Deaton, a pro-XRP lawyer, anticipates that Ripple’s fine might be lower than its legal fees, potentially falling within the range of $10 million to $100 million. These predictions stem from allegations that Ripple violated securities laws by selling $770 million worth of XRP.