Stuart Alderoty provides clarity on the ongoing SEC v. Ripple lawsuit, thus cooling down the debate about a potential settlement in the legal tussle.
Ripple CLO has squashed the growing rumors regarding a pre-trial conference in the SEC lawsuit. Many XRP community members speculated that the conference could pave the way for a settlement, potentially ending the multi-year legal battle.
According to a scheduling order issued last year, the court ordered the parties to hold a final pre-trial conference on April 16 at 2 PM, a meeting that Magistrate Sarah Netburn will oversee.
Alderoty Says No Pre-Trial Conference
While many XRP enthusiasts speculated that the pre-trial conference signals progress toward the lawsuit’s settlement, Ripple, through its Chief Legal Officer (CLO), squashed these rumors.
Reacting, Alderoty stated that a final pre-trial conference would not be held as ordered because the SEC had already dismissed its charges against the individual defendants, Brad Garlinghouse (CEO) and Chris Larsen (Chairman).
Seeing some confusion on next steps with the SEC vs. Ripple case. To clarify – Ripple will file its response to the SEC’s request for penalties by April 22 and the SEC has until May 6 to reply. There is no final pretrial conference because the SEC dismissed the charges against… https://t.co/Jn5Pw5rM30
— Stuart Alderoty (@s_alderoty) April 16, 2024
Next Steps
Furthermore, the Ripple CLO highlighted the next steps of the SEC lawsuit. Per Alderoty, Ripple will file its reply to the SEC’s remedies-related brief, which sought nearly $2 billion in penalty.
Notably, Ripple will respond to the SEC’s proposed penalty by April 22, 2024. However, the motion will be filed under seal, with a redacted version expected to be filed in the public docket by April 24, 2024.
Afterward, Alderoty mentioned that the SEC will also file its reply to Ripple’s opposition by May 6, 2024.
Settlement Debate Soars
There have been a series of debates regarding a settlement in the SEC v. Ripple lawsuit in recent times. This comes after the parties held a settlement conference on March 29.
Although the conference’s outcome was unknown at press time, some XRP enthusiasts speculated that a settlement in the lawsuit could happen soon.
The recent SEC closed-door meeting on April 11 further stoked the flames of these rumors. Moreover, top XRP community member Ashley Prosper detailed several reasons why the SEC v. Ripple lawsuit is probably over, including the delayed release of 500M XRP from escrow.
At the time, some crypto holders stated that Ripple planned on selling the coins to raise funds for its settlement with the SEC. However, the 500M XRP unlocked from escrow were part of 1B coins scheduled to be released this month.
Following an issue with the escrow address, the system only unlocked 500M XRP on April 1, while the remaining 500M XRP were unlocked on April 12.
As Alderoty cools down the widespread settlement rumors with his recent tweet, the focus is now on Ripple’s upcoming response to the SEC’s remedies brief scheduled for April 22.
Ripple is expected to leverage a Second Circuit ruling in the SEC v. Govil lawsuit to argue that disgorgement should only be paid for institutional clients who suffered financial losses from their XRP purchases.
If the court sides with Ripple, the company will only pay disgorgement to institutional clients who bought XRP above the coin’s current price. Thus, Ripple could pay a far lesser penalty than the whopping $2 billion the SEC demands.
