Three reasons why the SEC’s ‘boil-the-ocean demand’ should be denied by Ripple

 81 Interactions,  2 Today

The SEC vs. Ripple case is still ongoing, and the expert discovery deadline has been pushed back to November 12th. However, one major point of contention in the lawsuit is the recording of internal meetings that Ripple was supposed to produce.

Ripple’s search methods had previously been deemed “flawed” by the SEC. The regulator also requested a pre-motion conference for an order in order to compel Ripple to produce the recordings.

Now, Ripple has listed three main reasons as to why the SEC’s motion should be denied.

What are the three reasons?

Dated 8 October, the filing by the Attorneys for Defendant Ripple Labs Inc., claimed that the fact discovery deadline was over and furthermore, that the SEC had agreed to Ripple’s search methods for its recordings.

Next, the filing claimed that Ripple had “met its obligations” by carrying out the previous search.

Finally, Ripple claimed that there was no way to search for more recordings unless it reviewed more than 4,000 of them in total.

Moreover, the filing stressed that Ripple’s search was “comprehensive and reasonable.”

Boiling the ocean

In its filing, Ripple claimed that it had also produced “170,000 documents and one million pages that hit on responsive search terms.”

See also  Polkadot's DOT is now the fourth largest market cap coin, surpassing XRP.

It also added,

“Ripple’s prior productions include hundreds of documents that reveal the substance of many internal meetings, including meeting agendas, slide deck presentations with detailed speaker notes, and summaries and discussions of the meetings.”

The Attorneys went on to argue that other unproduced recordings were “duplicative” of the same. The filing said,

“The SEC’s boil-the-ocean demand is flatly incompatible with the Federal Rules, and given the massive amount of material already produced in discovery, the SEC’s request is disproportionate.”

What’s more, Ripple opposed the SEC’s claim that it had “refused” to search the contents of some recordings. It’s also worth noting that a footnote in the filing claimed that “The SEC also overstates the relevance of recording evidence.”

Court’s orders

Magistrate Judge Sarah Netburn granted Ripple’s request for a private or in camera review of three SEC documents on October 7. Two of these documents were related to the SEC’s conversations with law firms about digital assets, while the third was an email chain. The emails allegedly related to communication with another party about analysing XRP in the context of Hinman’s 2018 speech.

The Judge set a deadline of 15 October for the three documents. Meanwhile, Ripple would have to respond by 22 October.

Leave a Reply

Your email address will not be published. Required fields are marked *