Ripple seeks more time for remedies discovery after SEC win

In a recent legal maneuver, Ripple Labs has filed a motion with the U.S. District Court of the Southern District of New York to extend the remedies discovery deadline by one week. This request comes after a decision favoring the U.S. Securities and Exchange Commission (SEC) in its ongoing litigation. The extension sought by Ripple aims to adjust the timeline for compliance following a ruling that mandates the company to produce extensive financial documents concerning its XRP sales from 2022 to 2023.

Legal developments and Ripple’s request

The motion, filed on February 6, seeks to push the originally scheduled remedies discovery deadline from February 12 to February 20, 2024. This action was prompted by a recent court decision on February 5, where Judge Sarah Netburn ruled in favor of the SEC, requiring Ripple to submit detailed financial records.

Defense attorney James K. Filan highlighted the significance of this development, noting its potential impact on the case’s progression. Ripple argues that the SEC’s victory, occurring merely a week before the discovery period’s conclusion, has significantly compressed their timeline for responding with the necessary documentation.

XRP’s motion underscores the challenges of meeting the original deadline due to the sudden requirement to provide a substantial volume of documents. The company asserts that an additional week would ensure adequate time for collecting and producing these documents, emphasizing that the extension would not prejudice the SEC.

Furthermore, Ripple has clarified that this request for an extension does not seek to alter any other case deadlines. The SEC’s agreement to this extension underscores a mutual understanding of the necessity for additional time to ensure thorough compliance with the court’s order.

The context of Ripple’s legal battle

This legal skirmish is part of a broader litigation saga between Ripple and the SEC. It began with the SEC’s allegations that Ripple conducted unregistered securities offerings through its XRP sales. The recent disputes over post-complaint discovery and the SEC’s successful motion to compel Ripple to produce sales documents highlight the ongoing complexities of this case. 

As the deadline for remedies discovery approaches, the court’s decisions will be crucial in shaping the litigation’s trajectory. Ripple’s proactive request for an extension reflects the company’s commitment to complying with legal requirements while navigating the challenges posed by the litigation process.

Ripple’s effort to extend the remedies discovery deadline is a strategic response to recent legal developments, aiming to ensure compliance and thorough preparation in its ongoing legal battle with the SEC. As both parties prepare for the next phases of the litigation, the outcome of this motion and the subsequent compliance efforts will be closely watched by legal experts, investors, and the broader financial technology community.