Ripple has scored another victory in its legal battle against the US Securities and Exchange Commission (SEC). Judge Netburn yesterday denied the SEC’s request to produce the personal financial records of Brad Garlinghouse and Chris Larsen.
The Court denies the SEC’s request for personal records of individuals not connected to XRP Accordingly, the Court finds that the SEC’s requests for the Individual Defendants’ personal financial records, apart from those records of XRP transactions that are already promised, are not relevant or proportional to the needs of the case. Accordingly, the Individual Defendants’ motion is GRANTED. The SEC shall withdraw its Requests for Production seeking the Individual Defendants’ personal financial records and withdraw its third-party subpoenas seeking the same. If, as discovery progresses, the SEC uncovers evidence that the Individual Defendants have not been forthcoming with records of their XRP transactions, it may provide such evidence to the Court and renew its application. SO ORDERED. (Signed by Magistrate Judge Sarah Netburn on 4/9/2021).
The Court is not persuaded that the SEC should be entitled to obtain the entirety of the Individual Defendants’ personal financial records over an eight-year period for the purpose of bolstering its’ “proportional” financial motive argument. The SEC has alleged that the Individual Defendants gained more than half a billion dollars from their sales of XRP . See, e.g., ECF No.46 at ¶ 6. Such an extraordinary sum surely is great enough to make the same “motive” argument, regardless of whether it represented 95% or 5% of the Individual Defendants’ wealth.
Here are the official court documents provided by James K. Filan