SEC Lawsuit Against Ripple’s Top Executives has been Dismissed

The legal representatives of the United States Securities and Exchange Commission (SEC) have revealed their intention to pursue the dismissal of all accusations directed at Ripple’s CEO, Brad Garlinghouse, and the company’s Executive Chair, Chris Larsen.

SEC to Dismiss Lawsuit with Prejudice

As per the recent report, a submission to the U.S. District Court for the Southern District of New York on October 19, the SEC informed the court that all parties in the case against Ripple had mutually agreed to a “dismissal with prejudice.” This mutual agreement signals that there is no requirement to arrange a future trial.

Surrendering to the Market 

The filling reads: “The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case.”

Following the submission, Ripple’s Chief Legal Officer, Stuart Alderoty, characterized the action as more of “a surrender by the SEC” as opposed to a formal settlement. In an October 19 post, Garlinghouse said: “Chris and I […] were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a decade.”

Lawsuit Against Garlinghouse and Larsen 

It is noteworthy that this legal battle has persisted for nearly three years. It all began in December 2020 when the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, along with its CEO Brad Garlinghouse and Chairman Chris Larsen. The SEC’s claim was that Ripple Labs had conducted the unregistered sale of XRP, resulting in around $1.3 billion in revenue.

SEC Lost XRP Lawsuit

In 2021, Garlinghouse conveyed his optimism regarding the lawsuit’s outcome. Moreover, Judge Sarah Netburn, overseeing the case, has permitted Ripple’s access to SEC documents concerning Bitcoin and Ethereum. 

This is a part of Ripple’s efforts to support its claim that it has typically treated XRP as a utility token. In addition, both parties have petitioned the court for a summary judgment one year ago.