US Judge Sets Schedule for Ripple's Motion Against SEC's New Expert Materials

According to U.Today, Sarah Netburn, a US Magistrate Judge for the United States District Court for the Southern District of New York, has set a schedule for Ripple's motion to strike new expert materials submitted by the U.S. Securities and Exchange Commission (SEC). The SEC has until April 29 to respond to the motion, after which Ripple will have three business days to file its reply. Ripple recently opposed the SEC's motion for remedies, asking the court to reject the agency's request for disgorgement and prejudgment interest. The San Francisco-based company also argues that the SEC's civil penalty should not exceed $10 million, while the regulator is seeking approximately $2 billion in fines and penalties. Ripple has also moved to strike the SEC's new expert materials, which include a declaration and two supporting exhibits prepared by Andrea Fox, an Assistant Chief Accountant in the SEC’s Division of Enforcement. Ripple contends that it did not have the opportunity to take Fox's deposition and that reopening remedies discovery to do so would result in unnecessary expense and delay. The company further claims that the SEC was obligated to disclose Fox as an expert witness before the end of discovery. Ripple argues that this obligation cannot be circumvented by merely describing her as a summary witness. As a result, Ripple is urging the court to strike her declaration due to the SEC's late disclosure.