Legal Experts Think Ripple Will Lose This Case Against SEC

Two pro-XRP attorneys speculate that Ripple will lose its motion to strike testimony provided by Andrea Fox, an accountant with the SEC’s Enforcement Division.

Attorneys Bill Morgan and Jeremy Hogan made this known while reacting to Ripple’s reply brief to the SEC’s opposition to the motion to strike.

Motion to Strike Fox Declaration

For context, Ripple filed its reply brief yesterday to further support its April 22 motion to strike expert materials submitted by the SEC. Notably, the SEC included Fox’s declaration in its remedies-related opening brief in March, aiming to strengthen its case for an injunction and punitive penalty.

The bone of contention about Ripple’s motion to strike is whether Fox is an expert or summary witness. While Ripple claimed the accountant is an expert witness, the SEC debunked this claim in an opposition last month, noting that she is a summary witness.

Ripple argued that the SEC was supposed to provide Fox’s declaration and identity during the discovery phase of remedies to grant it the opportunity of deposing her.

However, the SEC contends that Fox is a summary witness who only summarized existing facts to give the judge a better understanding of Ripple’s audited financial records.

Ripple’s Reply Brief

In the reply brief, Ripple insisted that Fox is an expert witness. Building on this premise, the company noted that the SEC still failed to dispute its argument that mandates the agency to submit her report during the discovery phase.

Additionally, Ripple contended that even if Fox is a summary witness, the parties’ agreement and court scheduling order require the SEC to reveal her identity before the end of remedies-related discovery.

Furthermore, the company said the SEC did not address the legal precedents it raised to support its motion to strike.

Legal Experts Think Ripple Will Lose

It bears mentioning that seasoned defense lawyer James K. Filan shared Ripple’s reply brief on X yesterday.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a letter in further support of its April 22, 2024 motion to strike new expert materials, and in reply to the SEC’s April 29, 2024 opposition to that motion to strike. pic.twitter.com/vXW1C22Oso

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 2, 2024

The brief stirred reactions among top legal experts, who predicted that Ripple would lose the case.

Attorney Morgan noted that even though Ripple could lose the motion, the judge might agree that Fox gave some expert evidence in her report, thus allowing the company to depose her.

Similarly, Attorney Hogan speculated that the SEC would secure a win against Ripple regarding the motion to strike. He emphasized that if the court finds Fox to be an expert, it will not strike her declaration but allow Ripple to depose her.

The court’s decision on the motion could come at any time, and the outcome remains uncertain. In the meantime, crypto community members are expecting the SEC to file its reply to Ripple’s opposition to its opening remedies brief. The SEC reply brief is due on May 6. Afterward, the court will issue its decision on remedies.

Source