In the latest twist in the legal saga between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC), Ripple has filed a motion seeking permission to submit a sur-reply in response to the SEC’s recent motion to compel.
On January 23, the SEC filed a reply supporting its motion to compel Ripple to produce crucial documents, including audited financial statements for the years 2022 to 2023 and post-complaint contracts related to institutional sales of XRP, the cryptocurrency associated with Ripple. The SEC has consistently argued that these documents are essential for presenting relevant facts in the ongoing remedies litigation.
The SEC, in its reply, reiterated its stance on Ripple’s arguments, dismissing them as false and underscoring the importance of the requested records. The regulatory body is specifically seeking audited financial statements from 2022 to 2023, details of post-complaint institutional sales contracts, and responses to an interrogatory related to the proceeds from institutional sales of XRP since the filing of the complaint in December 2020.
Ripple Counters SEC’s Claims
However, Ripple has now fired back with a new motion, requesting permission from Judge Netburn to file a sur-reply. In the motion, the company contends that the SEC has made a significant factual mischaracterization in its recent reply. The sur-reply, if allowed, aims to rectify this alleged misrepresentation and provide the court with a more accurate account of the disputed issues.
In the motion, the company states, “The Court would benefit from the sur-reply letter because it will clarify the issues in dispute and allow the Court to rule on an accurate record.” It argues that the proposed sur-reply is necessary to address new arguments raised by the SEC in its latest reply.
“Motions for leave to file sur-reply information are subject to the sound discretion of the court,” Ripple’s motion explains, “and are often granted where, as here, a party seeks to address new arguments raised in a reply.”
Crucially, the SEC does not oppose Ripple’s request for a sur-reply, adding an interesting dimension to the ongoing legal proceedings. This development suggests that both parties may be open to a more detailed and nuanced exploration of the issues at hand. However, the court’s decision on the company’s motion for sur-reply will likely play a pivotal role in shaping the trajectory of this high-stakes case.
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