- Ripple criticizes the SEC for their unprecedented request.
- The court ordered SEC to present its case for sealing by June 14.
The Security Exchange Commision (SEC) is taken the extreme position that the identities of its experts and any significant commentary of their reports should remain secret request for an expedited hearing. As per Ripple the SEC request’s factual record does not justify the unusual relief.
James Filan, a lawyer, highlighted on Twitter that until Judge Torres issues her judgment, the documents submitted by the Ripple Defendants and SEC will be kept private. The court will decide what information should be made public and what should remain secret.
SEC’s extraordinary request
According to Ripple the purpose of a Daubert motion, is to call into question the validity and acceptance of an expert report. Due to the SEC’s request, the complete motion for the four experts must be filed and maintained under seal. The SEC’s actions were condemned by Ripple as being against the public’s right to access relevant materials.
After the SEC requested that its response to an amici motion regarding the Daubert challenge be sealed, Ripple strongly objected. The Ripple team argued before Judge Torres of the Southern District Court of New York, that the evidence did not support up the SEC’s allegations.
The SEC stated that the sealing should be extended to three other experts after asking to have information about Expert 1 sealed. The commission not only requests that their names and related information not be made public, also that any motion on the content of their reports be kept secret and this is the situation up until the first expert’s motion is settled.
The court decision said the SEC must now argue why the records should be sealed and the court ordered SEC to present its case for sealing without further delay by June 14.
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