Ripple is refusing to back down in the ongoing legal battle against the SEC, as the company asks the court to dismiss the SEC’s expert evidence. In a recent development, Ripple filed a letter supporting its request to strike new expert materials presented by the SEC and claimed that the SEC should have disclosed the expert witness earlier in the discovery phase.
The disagreement centers around whether Andrea Fox, the SEC’s expert witness, should be considered as such. Ripple argues that Fox’s accounting skills go beyond simple arithmetic, making her an expert witness. On the other hand, the SEC argues that Fox’s role was merely to summarize financial facts and did not involve providing expert testimony or opinions. They claim that the report presented by Fox used elementary math to simplify Ripple’s audited financial records.
Ripple raises concerns about the timing of the declaration, accusing the SEC of delaying the identification of Fox as an expert witness. They argue that this lack of information hinders accurate cross-examination and trial fairness. Ripple cites previous cases where similar declarations were dismissed due to improper disclosure. The misclassification and disclosure of expert testimony, according to Ripple, misleads the court and opposing parties.
The motion to strike Fox’s declaration is currently awaiting a ruling from the court. In the meantime, the SEC must submit a remedy-related reply brief by May 6, addressing Ripple’s objections to the SEC’s opening brief seeking punitive damages and an injunction. The court will also decide on whether to ban Ripple from selling XRP to institutional investors, which could significantly impact Ripple’s expansion in the US.
The outcome of this case could have far-reaching implications for similar cases. If Ripple succeeds in striking Fox’s declaration, it may limit the SEC’s ability to argue for specific penalties. Conversely, if the declaration is upheld, it would strengthen the SEC’s case against Ripple. Community reactions to the motion are mixed, with some experts, such as Jeremy Hogan and Bill Morgan, predicting that the SEC will likely win the motion or that Ripple may be allowed to depose the witness instead of striking her testimony.
As the legal battle between Ripple and the SEC continues to unfold, the industry watches closely for the court’s rulings and the potential impact on both parties involved.