The United States Securities and Exchange Commission (SEC) has scaling its legal battle against Ripple with a new motion to compel the production of financial documents and post-complaint XRP sales contracts. On Tuesday, the agency filed a response to the defendant’s opposition to his motion.
The United States Securities and Exchange Commission (SEC) has scaling its legal battle against Ripple with a new motion to compel the production of financial documents and post-complaint XRP sales contracts. On Tuesday, the agency filed a response to the defendant’s opposition to his motion.
The SEC’s Argument for Greater Disclosure
In a recent filing, the SEC urged Judge Sarah Netburn of the Southern District of New York to order Ripple to disclose audited financial statements for 2022 and 2023, as well as all post-complaint contracts for sales of XRP to parties. who are not employees.
The SEC’s motion maintains that these documents are critical to determining appropriate remedies, and emphasizes that Ripple’s recent financial activity and sales contracts are relevant to the case.
The SEC has rejected Ripple’s claims that this request is untimely, insisting that ongoing sales and financial health are critical to evaluating potential violations and designing remedies.
Ripple’s stance on discovery requests
Ripple has strongly opposed the SEC’s motion, arguing that the requests are untimely and irrelevant to the case.
The company claims that the SEC had ample opportunity to request this information during the initial discovery phase and accuses the Commission of attempting to introduce a new phase of litigation without adequate justification. Ripple also maintains that the information requested by the SEC, particularly regarding its post-complaint sales and financial condition, does not influence the court’s decision regarding remedies.
Ripple emphasizes that the SEC’s approach could potentially lead to protracted and unnecessary new litigation, disrupting the judicial process and imposing undue burdens on all parties involved.
