SEC filed an amended lawsuit against Ripple, clarifying the responsibility of its management

The US Securities and Exchange Commission (SEC) has filed an amended version of the lawsuit against Ripple in court. The new information relates primarily to describing the actions of individual defendants, including Ripple executives Brad Garlinghouse and Chris Larsen.

“Larsen and Garlinghouse both played a significant role in discussing and approving Ripple institutional sales and other XRP offerings to individual investors,” the SEC said. – In April 2016, the CFO sent a letter to Larsen and Garlinghouse regarding the continued “pressure on XRP price” and offered to instruct the market maker to “slightly cap our sales target for a few days to see if that would help stabilize and / or raise the XRP price” … Larsen replied: “Yes, let’s limit.”

hownotes lawyer Jeremy Hogan, this is a rather unusual accusation, since in most cases the SEC does not seek to establish individual responsibility in cases of the release of assets by the company. Larsen and Garlinghouse are accused of offering and selling securities, as well as helping Ripple violate relevant requirements.

Among other things, the SEC now demands to provide her with a letter from Ripple’s lawyers, which allegedly contains a warning about the possibility of recognizing XRP as a security. According to Hogan, such documents are protected by attorney-client privileges, however, if the SEC achieves their disclosure, this could aggravate the position of the company’s management.

Earlier, Ripple’s lawyers announced that they can file a motion to leave the claim without consideration by the court. Presumably, this is the reason for the SEC’s decision to file an amended lawsuit indicating factual information about violations by the company’s leaders. Hogan believes Ripple is unlikely to succeed in dropping the suit given the new evidence against Larsen and Garlinghouse.

After filing additional information, Ripple lawyer Stuart Alderoti said : “We are disappointed that the SEC has to correct its claim after it has waited several years to file it at all.”

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