The detection phase of the lawsuit against Ripple Labs further than judge Sarah Netburn refused, partly the US Securities and Exchange Commission inquiry for additional discovery.
Ripple’s fair dismissal defensewhich unsuccessfully caused the SEC to strike is based on actions by the U.S. SEC, rather than its own conduct, as the company focuses on the Commission’s failure to adequately inform the market of its position as to whether XRP qualified as security.
The court denied requested access to documents related to Ripple’s XRP transactions after the date of the lawsuit submission last December and leaves the SEC room to renew the application.
“If, after the exchange of expert opinions between the parties, it becomes clear that Ripple’s expert relied on documents that fairly request the SEC to review documents after the complaint, the SEC may renew its application.”
In addition to the documents related to Ripple’s XRP transactions, the court also denied the SEC’s filing for documents related to Ripple’s lobbying efforts.
“Ripple’s lobbying about the status of XRP is not relevant, and any relevance argument is outweighed by the production burden,” the judge argued.
In addition, the court denied the SEC’s request for a sixth testimony as “immature”, which was requested to “fill any gaps in knowledge” that testimony from other witnesses might leave behind the SEC’s discovery.
For its sixth deposit, the SEC requested the deposit of a Ripple “agent under” Rule 30 (b) (6). ”
This could have been an effective tool for the Commission as this witness, unlike other employees who have been dismissed in the dispute, would have the right to speak for the company.
Eventually, the appointed judge also denied the SEC’s motion to order Ripple to search the records of its general counsel and deputy general counsel on the grounds that they were “very incriminating.”
However, part of the SEC’s motion was cleared as the court granted the commission the right to make five more statements, including former Ripple employees Ron Will, Ethan Beard, Phil Rapoport and Ryan Zagone, and Christian Gil, co-founder of crypto trading companies and liquidity provider GSR.
In addition, the appointed judge directed Ripple to look for related documents from the company’s former director of regulatory affairs, Ryan Zagone, and the company’s chief financial officer, Cameron Kinloch.
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