- Ripple Labs executives hired key attorneys to dismiss the claims against them in the lawsuit.
- Larsen replaced his legal representation with Nowell Bamberger, Rahul Mukhi, and Samuel Levander from Cleary Gottlieb.
- The SEC’s extended deadline extension for its principal brief regarding the appeals is set for January 12, 2025.
Ripple Labs has hired key lawyers in its lawsuit against the U.S. Securities and Exchange Commission (SEC). CEO Brad Garlinghouse and co-founder Chris Larsen have appointed attorneys to fight the SEC’s charges.
The executives have hired the same lawyers, prioritizing the dismissal of charges against them. Cleary Gottlieb’s partner Matthew Solomon and pro-XRP lawyer John Deaton have joined as non-admitted attorneys, limiting their involvement in the appeals.
Larsen Switches Law Firms
Court filings show that Larsen has changed law firms, dropping Paul, Weiss, Rifkind, Wharton & Garrison. This occurred around the same time the court notified Larsen that he had not submitted his notice of appearance. Larsen will now be represented by the same legal team that is defending Garlinghouse, including attorneys Nowell Bamberger, Rahul Mukhi, and Samuel Levander from Cleary Gottlieb.
Although the SEC initially dropped charges against Garlinghouse and Larsen, it has reinstated them in the recent appeals filing. The agency is challenging XRP sales by Ripple Labs and its executives, as well as the distribution of tokens to Ripple employees.
Ripple’s Counter Appeal and the Howey Test
Ripple’s counter appeal challenges the SEC’s definition of an investment contract. The company argues that an investment contract requires a formal contract, post-sales obligations from the seller, and profit dependence on the seller’s activities. The counter-appeal focuses on the Howey Test, district court rulings, and the fair notice defense.
In a related development, the SEC requested a deadline extension for its principal brief regarding the appeals, which is now set for January 12, 2025. With the SEC’s extended deadline and the Ripple team’s new lawyers, the lawsuit may see exciting twists.
It is notable that the executives have hired the same lawyers, which means that they prioritize dismissing the charges against them over the broader Ripple team. Reportedly, Cleary Gottlieb’s partner Matthew Solomon and pro-XRP lawyer John Deaton have filed as non-admitted attorneys, implying that their appearance in the appeals is limited.
As revealed by the recent court filing, Larsen has switched law firms, dropping Paul, Weiss, Rifkind, Wharton & Garrison. Interestingly, this coincided with the court notifying Larsen for not submitting his notice of appearance. Larsen will now be represented by the same legal team successfully defending Garlinghouse. This legal team includes attorneys Nowell Bamberger, Rahul Mukhi, and Samuel Levander from Cleary Gottlieb.
Read also :Russia’s Central Bank Report Spotlights Ripple Potential Despite SEC Appeal
Though the SEC charged Garlinghouse and Larsen in their initial lawsuit, it later dropped the charges against the executives. However, in the recent appeals filing, the regulators included charges against Garlinghouse and Larsen. The agency is now challenging XRP sales by Ripple Labs and its executives, as well as the distribution of the tokens to Ripple employees and other entities.
Meanwhile, Ripple’s counter appeal questions the SEC’s definition of investment contract. The team argued that an investment contract requires a formal contract, post-sales obligations from the seller and profit dependence on the seller’s activities. The counter-appeal focuses on the Howey Test application, district court rulings, and the fair notice defense.
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