Court Orders Ripple and SEC to Discuss Possible Settlement

US District Judge Analisa Torres has mandated Ripple and the Securities and Exchange Commission (SEC) to discuss a potential settlement of the lawsuit.

The judge issued the order alongside her recent ruling on the SEC’s request for an interlocutory appeal. According to the court’s decision, the settlement discussion is scheduled to be held before the final pretrial conference.

Settlement Discussion to Hold Before Pretrial Conference

As reported earlier, the final pretrial conference is scheduled for April 16, 2024, at 02:00 p.m. Notably, the parties and their counsels are mandated to hold a physical meeting for at least an hour in order to discuss a potential settlement.

“Prior to the final pretrial of the conference, counsel for both parties, along with the parties themselves, shall meet in person for at least one hour to discuss settlement of this matter,” the court ordered.

The order is in line with the previous directive issued by Magistrate Sarah Netburn, the judge in charge of SEC v. Ripple pretrial proceedings.

Court Orders Parties to Select 3 Dates for Settlement Conference

Shortly after the court issued its summary judgment decision, Judge Netburn ordered the parties to select three mutually convenient dates for a settlement conference.

The parties are required to select the dates only if they believe a settlement conference is “productive at this time.”

However, the judge ordered that the selected dates for the scheduled conference should be communicated to the court at least six to eight weeks in advance.

Therefore, the parties are expected to submit three dates for the settlement discussions six to eight weeks prior to the scheduled pretrial conference on April 16, 2024.

Is Settlement Possible At this Stage?

Meanwhile, the SEC v. Ripple lawsuit has previously seen two settlement conferences. However, both meetings did not result in a settlement of the lawsuit.

It bears mentioning that the previous settlement conferences took place before the court issued the summary judgment on July 13, 2023.

Ripple has clarified that it is open to settling with the SEC on the condition that XRP receives clarity. Interestingly, the court has already declared XRP a non-security.

On the other hand, the court denied the SEC’s request to file an immediate appeal, challenging Ripple’s victory. Hence, the SEC will have to wait until the lawsuit is resolved to file a full appeal in the Second Circuit.

As reported earlier, legal analyst Scott Chamberlain speculates that the SEC’s quest for a successful appeal at this stage is more complicated. He added that the lawsuit is unlikely to reach the US Supreme Court following Judge Torres’ recent verdict.

With the court mandating the parties to discuss the settlement of the matter, the upcoming conference could yield positive results, unlike the previous ones.

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