With a recent court decision, the continuing legal conflict between Ripple Labs and the US Securities and Exchange Commission (SEC) continues. The parties’ petitions to exclude expert evidence from consideration at summary judgment and trial have finally been decided by the court.
Judge Analisa Torres issued a decision in which she granted certain motions and refused others, giving neither the petitioner nor the defendants the advantage. Nonetheless, one of the main effects of the decision was to bar Expert No. 1, Patrick Doody, from giving a testimony about the perspectives of a reasonable XRP buyer.
Ads Notably, Doody was originally employed by the SEC to examine the expectations of token buyers; however, the court has since allowed Ripple’s petition to exclude his evidence.
Related Warns Former SEC Attorney Bank Run Is “Inevitable” for Binance The SEC’s case will be affected by the omission of Doody’s evidence because the agency must demonstrate that investors had a reasonable expectation of profiting from Ripple’s efforts. It is unclear how the SEC will demonstrate “reasonable” reliance in the absence of Doody’s evidence. Seward & Kissel attorney Scott Chamberlain remarked on the decision on Twitter, saying that the absence of strong reasons prevented either party from getting what they sought. Judge Torres, on the other hand, was lauded by Chamberlain for being “sharp, rigorous, and totally unbiased.” An attorney who has been carefully following the Ripple case, Jeremy Hogan, also shared his opinions on the decision on Twitter.
Hogan pointed out that the SEC was in a tough position since its only expert witness on the topic of a “reasonable” expectation of profits had been disqualified. While Doody’s evidence was excluded, the SEC is still likely to pursue its case against Ripple and its executives. Brad Garlinghouse and Chris Larsen, two of Ripple’s top officials, are defendants in a case brought by the SEC, which claims that they sold shares in violation of US securities laws.
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