Ripple aims to prevent admission of SEC expert evidence in court proceedings

Ripple has made a request to exclude new expert resources that the SEC claims to possess. These resources are associated with Magistrate Judge Sarah Netburn. The timing of this request has hindered Ripple’s ability to effectively respond.
The materials in question are part of the SEC’s remedies brief, which is crucial for the ongoing appeal. Ripple has pointed out that the SEC failed to disclose certain allegations during the discovery phase of the proceedings. This phase, known as the ‘evidentiary stage,’ allows both parties to present and discuss evidence to help the judge make informed decisions.
Ripple accuses the SEC of intentionally hiding expert details
During the discovery phase, the SEC presented an expert report on disgorgement but did not provide a declaration from its main technical specialist, Andrea Fox. Fox is an assistant chief of account in the SEC’s enforcement division and her examination is important for the next stage of the litigation.
Ripple anticipated that the SEC would only reveal the Fox file shortly before the trial, leaving them with limited opportunities to counter the SEC’s claims. The SEC classified Fox as an expert witness, while Ripple disagrees, arguing that this was an attempt to conceal information until it became inconvenient.
Ripple contests the SEC’s high penalty proposals
Ripple argues that Fox should be considered a certified expert due to her knowledge in the field. Ripple believes that Fox’s analysis goes beyond summarizing existing evidence and qualifies her as an expert witness. The SEC, on the other hand, claims that Fox’s arguments only make her a summary witness and not an expert.
The SEC opposes Ripple’s request to allow Fox to cooperate secretly and is actively against admitting the Fox report as evidence. The deadline for filing the dispute case is set for next Thursday, with the SEC expected to submit their formal opposition within 5 business days. After that, Ripple will no longer have the right to file any motions to respond to the opposition within three business days.
All of these disputes arise as Ripple fights against the SEC’s proposed high civil penalty. Ripple strongly disagrees with the penalty amount of $876.3 million and argues for a cap of $10 million. They openly challenge the basis for the SEC’s penalties and disgorgement, making it a contentious issue.