Change on the XRP lawsuit: Ripple executives object to the SEC’s motion for ‘enlargement,’ alleging impropriety.

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The case between Ripple and the United States Securities and Exchange Commission seems to be far from over. Within days of the regulatory agency filing a letter request for leave to file excess pages to consolidate resistance to motions, the legal counsels for two of the claimants, executives Brad Garlinghouse and Chris Larsen, filed a response.

Jorge Tenreiro filed the SEC’s motion to file a 60-page joint brief on April 30th, addressed to Judge Analisa Torres.

In their response, the aforementioned defendants have now claimed that the SEC must not be allowed to file a combined brief since it will give the agency the opportunity to “use a consolidated position to further conflate the relevant allegations against the defendants.” According to the letter, the administrative agency is threatening to unfairly bundle the accused together, amid its own claims that both Garlinghouse and Larsen had separate positions and tenures at Ripple.

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Since both individual defendants had expressly objected to the SEC’s individual charges levelled against them, counsels Solomon and Flumenbaum argued that the regulatory agency should be forced to,

“… address the specific arguments raised by each Individual Defendant, enable Individual Defendants to more squarely address the SEC’s opposition arguments against them on reply, and ultimately enable the Court to clearly see the parties’ arguments as to each Individual Defendant.”

Furthermore, the counsels said that the SEC’s motion for what amounted to enlargement was clearly contradictory to the strategy decided upon by both parties months earlier. The SEC’s desire to file a combined opposition, the response argued, is contrary to the same, particularly given that it was filed well after the actual defendants’ individual briefs were filed.

Such an attempt “should be denied,” the defendants’ counsels argued, adding that approving the SEC’s appeal would “inevitably muddy the distinct factual allegations.”

However, this is not the only point of controversy that has arisen between the defendants and the SEC in recent days. For example, just last week, Ripple accused the SEC of using “extra-judicial tactics” in its MOU demands, an accusation the agency firmly denied.

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However, one of the claimants, CEO Brad Garlinghouse, remains upbeat about the case. When asking about the status of the prosecution, he recently said,

“So far, I feel good about how that’s been going, but it’s certainly frustrating.”

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