In a recent development, attorney James K. Filan took to Twitter to provide a crucial update on the SEC Gov v. Ripple XRP case. Filan’s tweet shed light on the eagerly anticipated timing of when the ordered unsealing of documents would occur.
According to a noteworthy order issued by the Court on September 12th, 2022, the involved parties were granted a period of 21 days to submit public versions of Summary Judgment documents. These versions must adhere to the guidelines outlined in the sealing ruling.
Notably, yesterday’s ruling marked the commencement of this countdown, making June 6th the significant date on which the documents as mentioned above are expected to be unveiled.
As the legal battle between the SEC and Ripple XRP continues to captivate the attention of stakeholders and enthusiasts alike, the imminent unsealing of the summary judgment documents is eagerly awaited. The outcome of this unsealing may prove pivotal in shaping the trajectory of this high-stakes litigation.
Ripple’s Sales To ODL Customers Under Scrutiny
As TronWeekly reported yesterday, Judge Torres denied the SEC’s request to seal the Hinman documents, stating that mere claims containing confidential business information are not enough to justify sealing.
The SEC argued that the documents were irrelevant to the summary judgment motions and their disclosure would be prejudicial.
Attorney Bill Morgan also took to Twitter to share his thoughts on Judge Torres’ decision to reject the SEC’s request to seal the Hinman documents. According to Morgan, the decision demonstrates that Judge Torres has extensively familiarized herself with Ripple’s past and present business practices.
He noted that while Ripple previously engaged in institutional and programmatic sales of XRP, its current focus is on selling to ODL customers. Interestingly, Judge Torres referred to Ripple’s ODL as a “product,” implying that sales to ODL customers might be categorized differently than common enterprise sales.
Notably, the Howey test was not mentioned. Morgan also highlighted the SEC’s lack of opposition to sealing the 2020 and later financial statements, potentially indicating Ripple’s shift away from institutional and programmatic sales.
However, when it came to past sales that Ripple couldn’t prove wouldn’t harm its current and future business, Judge Torres took a different stance and disallowed redactions. Morgan cautiously interpreted this development, suggesting that Judge Torres and the SEC may not find sales to ODL customers concerning.
He emphasized that if sales of XRP for Ripple’s ODL “product” are not considered investment contracts, then XRP itself cannot be deemed a security. Morgan also hinted that past programmatic and institutional sales of XRP could be a separate matter warranting further examination.