The court filing suggests that Ripple’s attorneys expect the SEC against Ripple will not be completed until August 26, increasing the likelihood of summary judgment in September.
Discussion of ending Ripple’s lawsuit against SEC has been dragging on for many months now, as the blockchain company risks missing out on trading opportunities while the case lingers and XRP holders wait for the digital asset to be relisted.
Ripple appears to expect the lawsuit to conclude between August 26 and November 18, according to information included in a joint stipulation and (proposed) order altering the timing of an ongoing class action lawsuit parallel to the SEC lawsuit against Ripple.
The letter was filed on February 23 and says the class action start date would be August 26, but the parties have agreed to start on November 18, 2022.
“Because of the overlap of factual and legal issues between this case and the SEC action, the parties agree that it is more effective to have certain aspects of the SEC action precede certain time limits in that action. This will reduce the burden on the parties, streamline discovery in this case and potentially reduce the burden on the Court by reducing the issues in dispute,” said the document filed by Suzanne E. Nero, attorney at King & Spalding LLP.
The argument is that SEC c. Ripple is a concurrent dispute that involves many of the same factual and legal issues at issue in the case. There would be “efficiencies” in allowing the SEC’s XRP lawsuit to “precede this case.”
The court document suggests that Ripple’s lawyers expect the SEC against Ripple will not be completed until August 26, increasing the likelihood of summary judgment in September, predicted by attorney Jeremy Hogan, partner of the Orlando-based law firm Hogan & Hogan.
“I think Ripple thinks they win the SEC case in September/October and then that class action lawsuit disappears due to ‘collateral estoppel,'” Hogan commented.
While it’s true that Ripple executives have said they won’t cave to the SEC, that doesn’t change the fact that a settlement is statistically the most likely outcome for the XRP lawsuit.
Attorney Hogan recently shared a document outlining a few rules that the SEC and Ripple will follow, including a settlement discussion 14 days after the fact finding closes.
The last settlement discussion, which took place a few months ago, was not fruitful. The next most likely time for settlement would be in mediation, Hogan said.
Potentially in favor of Ripple is the fact that Judge Sarah Netburn, who saw all the documents behind closed doors, will host the mediation.
“She knows exactly what’s in the emails etc. and, if I’m right that the SEC is the problem child here, that could make a big difference. A good mediator can sometimes do miracles.
The pro-XRP community lawyer added that his the best estimate is that the settlement could come in April or May.