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Second Circuit Court of Appeals Issues Order in XRP Lawsuit

Published

2 months ago

November 1, 2024

SEC v Ripple Case: The US Court of Appeals for the Second Circuit issues the first order in the XRP lawsuit. The order came in response to the US Securities and Exchange Commission’s requests to the court to set January 15 next year as the deadline for its principal brief. This means the XRP community will not see any major developments in the lawsuit until the set date.

Court Sets Brief Filing Deadline in US SEC v Ripple Labs Lawsuit

In the last filing dated October 31, the appeals court has entered an order that the US SEC must file its opening brief regarding appeals in the SEC v Ripple Labs case by January 15, 2025.

As per a scheduling order filed last week, the US SEC requested the court to issue an order setting the initial brief filing date. Experts claimed the delay is likely due to an increase in Donald Trump’s win odds in the US presidential election, which increases SEC Chair Gary Gensler’s exit odds.

In addition, the court also said the appeals will be dismissed if the brief is not filed by the scheduled date. The court has also informed parties in SEC v Ripple that any motion to extend the date or seek other relief will not be granted.

Brad Garlinghouse and Chris Larsen Seek To Dismiss Charges

Notably, the crypto community was in shock to see US SEC included securities law violation charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen. The agency has appealed XRP sales by Ripple, Garlinghouse and Larsen, as well as XRP distribution to employees and others by the company.

Meanwhile, Ripple is questioning whether an “investment contract” must have a contract, post-sales obligations of a seller, and profit dependent on the seller’s activities. It also counter-appeals if district court’s rulings are erred and how years old Howey test applies to crypto. The company also revived the fair notice defense in the SEC v Ripple.

Both Garlinghouse and Chris Larsen hired the same lawyers who successfully obtained the dismissal of all claims for Garlinghouse in the Ripple vs SEC lawsuit in a district court. The lawyers include Cleary Gottlieb’s attorneys Nowell Bamberger, Rahul Mukhi, and Samuel Levander.

Judge Orders “Alternative Resolution” In re Ripple Labs Case

As reported first by CoinGape, Judge Phyllis Hamilton in the In re Ripple Labs Inc Litigation has ordered parties to consider an “alternative resolution.” Lead plaintiff Bradley Sostack and Ripple Labs, XRP II, and Brad Garlinghouse requested the court to issue a final judgment on plaintiff’s class action claims on securities law violations.

XRP price has dropped 1% over the last day, with the price currently trading at $0.51. The 24-hour low and high are $0.503 and $0.520, respectively. Whales continue to sell amid the developments in the SEC v Ripple case.

However, an analyst has predicted a $25 price target for XRP. The trading volume has increased by 40% in the last 24 hours, indicating a rise in interest among traders.