Ripple Labs Faces Key Decision in Ongoing SEC Litigation, Court Suggests Alternative Resolution

The U.S. District Court for the Northern District of California has proposed an alternative resolution in the ongoing Ripple litigation.

A U.S. District Court has proposed an alternative resolution for the remaining individual claims in the Ripple lawsuit.

According to a recent court order, Ripple Labs, its CEO Brad Garlinghouse, and related parties are to consider a “voluntary dismissal without prejudice” for the remaining individual claims. This option would allow the claims to be refiled after the appeal on the class action claims concludes.

Previously, the defendants, including Ripple Labs, XRP II LLC, and Garlinghouse, had requested a final judgment and a stay on specific individual state law claims.

If the parties agree to the proposed alternative resolution, they must file an amended order by Nov. 4, 2024. Should they disagree, they need to file a notice by the same date, indicating their choice to proceed with the current litigation path.

The court’s order adds a new timeline for Ripple and co-defendants. By Nov. 4, they must confirm whether they accept the court’s alternative resolution. Following this deadline, additional court dates are already set, with a pretrial conference on Dec. 19, 2024, and jury selection and trial beginning on Jan. 21, 2025.

These dates are pivotal as Ripple faces legal scrutiny over XRP’s classification. Choosing the alternative resolution might streamline some of the legal processes, allowing the parties to address individual claims after resolving class action issues.

Meanwhile, Ripple’s ongoing appeal against the U.S. Securities and Exchange Commission (SEC) is now advancing in the U.S. Court of Appeals for the Second Circuit. Both Ripple and the SEC have filed required documents in preparation for the appeal. The SEC has requested that Jan.15, 2025, serve as the deadline for its principal brief.

The SEC is also seeking to reinstate specific securities law charges against Ripple executives Garlinghouse and Chris Larsen. Ripple, in response, has enlisted additional legal support to aid in the dismissal of these charges. This appeal could impact XRP’s regulatory classification and Ripple’s business practices.

Despite the ongoing legal battles, XRP’s price has shown relative stability, trading at around $0.52 at the time of writing. The token has seen a 17% decline over the past month, but it has remained resilient, showing ongoing market support for the token.

XRP has also seen significant trading activity in derivatives, which indicate that investors are remaining engaged in the token despite the unresolved legal challenges. Open interest in XRP derivatives is also rising, suggesting strong speculative interest. The heightened trading volume in derivatives signals that the market is actively monitoring the case developments, and the market price movements are closely tied to updates in Ripple’s legal situation.

The above is the detailed content of Ripple Labs Faces Key Decision in Ongoing SEC Litigation, Court Suggests Alternative Resolution. For more information, please follow other related articles on the PHP Chinese website!