- Just when the legal battle between Ripple Labs and the SEC seemed to be drawing to a close, the latter is attempting to block a piece of extra evidence.
- Justin W. Keener, a non-party in the Ripple lawsuit, requested the court’s permission to submit what he described as “decisive evidence” on 3 April
- The SEC asked Judge Analisa Torres to dismiss the motion because the case is under review by the Appeals court, and the District Court can no longer consider new motions.
Just when the multi-year legal battle between Ripple Labs and the SEC seemed to be drawing to a close, a new twist has entered the picture. The SEC has now moved to block a non-party’s emergency attempt to introduce evidence in Ripple’s favor. This has now raised questions about procedure, transparency, and the actual status of the appeal.
SEC Pushes Back Against Keener’s Emergency Filing
3rd April saw Justin W. Keener, a non-party in the ongoing Ripple lawsuit, file an emergency motion requesting the court’s permission to submit what he described as “decisive evidence.” According to Keener, his materials supported Ripple’s position and spoke to broader issues, like the protection of American liberties. However, the SEC pulled a surprise move in response, asking Judge Analisa Torres to dismiss the motion.
The commission argued that because the case is now under review by the Second Circuit Court of Appeals, the District Court no longer has the authority to bring new motions into the picture. According to the SEC, once a case is on appeal, only the appellate court can rule on new filings. In essence, Keener’s efforts, however helpful to Ripple’s case, came too late.
Procedural Missteps Undermine the Motion
In addition to claiming the lack of jurisdiction, the SEC also pointed out several procedural missteps in Keener’s filing. Some of these included how Keener never formally requested to intervene in the case. According to the SEC, this missing step alone, makes the emergency motion invalid.
Per US law, a non-party cannot introduce evidence or take part in proceedings without formal intervention. This is while keeping in mind that the court had previously denied similar third-party attempts to participate in the case.
The SEC even went on to mention that while Keener’s evidence was valuable, there were better ways to share it. “Ripple’s attorneys can decide what should be used in their defense,” the SEC wrote in its filing. This means that Keener could have simply sent the documents to Ripple’s legal team without involving the court.
Ripple and SEC Lock Horns Over Appeal Status
More on the legal battle, investors and stakeholders are asking: Is the Ripple lawsuit actually over? Ripple, via its CEO Brad Garlinghouse, has publicly stated that both parties agreed to settle key terms. This included lowering the penalty and lifting the proposed injunction.
According to Garlinghouse, the case was “effectively over.” However, the SEC has yet to confirm any such deal in or out of court. According to legal experts like Australian lawyer Bill Morgan, this lack of confirmation leaves the door open to more legal hand-wringing.
Morgan says that “Ripple believes the appeals have ended, but the SEC told the judge that the case is still active in the appeal court,” Morgan noted.
In short, Ripple might have moved on, but the SEC isn’t quite ready to do so yet. Overall, with the SEC fighting against Keener’s request and standing firm on its arguments, the ball remains in the court’s hands. Judge Torres will need to decide whether to entertain the motion or not. If the court agrees with the SEC, Keener’s filing will likely be thrown out of the window. If it isn’t, the SEC could be in for another unexpected twist.
