XRP Lawsuit: Ripple to file sur-reply to correct SEC’s “misstatements” in Slack data dispute

The latest update in the XRP Lawsuit finally saw the defendants’ response. Ripple has filed a letter requesting permission to file an attached sur-reply to the SEC’s Motion to Compel Slack data discovery follow-ups. The sur-reply supports Ripple in the Slack data dispute, highlighting SEC’s misstatements in its latest letter.

#XRPCommunity #SECGov v. #Ripple #XRP Ripple requests permission to file a sur-reply to the SEC's letters regarding the Slack communications dispute. The request and the Sur-reply are attached. pic.twitter.com/P6hwOK5dzU

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 20, 2021

Ripple argued that the SEC has mischaracterized two statements, including the potential responsiveness rate of undiscovered Slack data, along with a Slack message sent by individual defendant, Bradley Garlinghouse.

Ripple Slack notification emails’ 15 percent more responsiveness rate

Ripple asserts that the SEC claim against the defendants’ Slack notification emails being 10-15 percent more responsive, than the rate of Ripple’s submitted emails, is false. The defense has clarified that it did not produce all 21,000 Slack notification emails that were collected, because of the extremely low response rate. Furthermore, the 111 Slack notification emails submitted also amount to responsiveness rates as low as 0.5 percent. Ripple emphasized that this completely contradicts SEC larger than life claims against Ripple’s Slack notification email potential responsiveness.

“From that collection of 21,000 Slack notification emails, Ripple produced a mere 111 Slack notifications, which amounts to a responsiveness rate of just 0.5% – far lower than the overall Slack communications’ responsiveness rate, and certainly not ten or fifteen times larger, as the SEC falsely claims. The responsiveness rate of Slack notification emails lends additional support to Ripple’s argument that the Slack data is not a uniquely rich source of the relevant communication.”, the defendants’ counsel states in the attached sur-reply.

Ripple Individual Defendant, Garlinghouse’s Slack Message

The defendants also highlighted SEC’s mischaracterization of Garlinghouse’s Slack message, which has been hidden under seal in the sur-reply. Ripple argued that the SEC claim backed by one Slack message, asserts extraterritoriality of Individual defendants’ actual XRP sales. The SEC undermined Garlinghouse’s argument of conducting a proper foreign offering of securities outside of the United States. Ripple argued the irrelevance of this Slack message and SEC’s farfetched efforts at proving illegitimate sales of XRP as securities.

“The SEC does not – and cannot – articulate how this Slack message has any relevance as to whether any Defendant’s sales occurred in the U.S., which is a necessary element of the SEC’s Section 5 claims.”