Anand Sinha
2 min read
In another twist to the years-long SEC vs. Ripple case, Judge Analisa Torres has denied the joint motion for an indicative ruling on their settlement, lawyer James Filan informed on X on May 15.
Judge Torres of the U.S. District Court for the Southern District of New York ruled that to vacate the final judgement would be "procedurally improper" since the parties didn't file the correct procedural motion.
As earlier reported, Ripple — the blockchain and payments firm — and the Securities and Exchange Commission (SEC) filed a joint settlement on May 8.
The motion requested Judge Torres for an indicative ruling to dissolve the injunction in the Aug. 7, 2024 judgment that prohibited Ripple from "unlawful offer and sale of securities." It also requested the court to reduce the civil penalty on Ripple from $125 million to $25 million.
The court has now ruled that both parties have failed to satisfy the heavy burden the court must overcome to "vacate the injunction" and "substantially reduce" the penalty by classifying their motion as one for "settlement approval."
It also underlined that such a request is properly made under the Federal Rule of Civil Procedure.
Relief from judgment is granted "only upon a showing of exceptional circumstances," Judge Torres wrote. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.”
Ripple's chief legal officer, Stuart Alderoty, said the latest order only concerns "procedural concerns" and doesn't affect "Ripple's wins."
Note that the federal securities regulator sued Ripple in December 2020, arguing that the firm was allegedly engaged in the sale of unregistered XRP token securities worth $1.3 billion.
