In a massive setback in the long-running XRP lawsuit, Judge Analisa Torres has denied both parties’ request for an indicative ruling. The court outlined reasons and cited case laws to back up its decision to deny this motion, which would have ultimately put an end to the legal battle.
Judge Torres Denies Request For Indicative Ruling In XRP Lawsuit
In an X post, Defense lawyer James Filan revealed that Judge Torres has denied Ripple and the SEC’s motion for an indicative ruling. The court determined that the motion was “procedurally improper,” noting that the request to absolve the crypto firm of some of its obligation to cease the illegal sale of securities and pay the full civil penalty amounts to a motion to vacate significant portions of the final judgment.
Judge Torres stated that the parties have to make such a request under the Federal Rule of Civil Procedure, which governs motions for relief from a final judgment. The court further remarked that by styling their motion as one for a settlement approval, Ripple and the SEC failed to address the heavy burden they must overcome to vacate the injunction and substantially reduce the Civil penalty.
As CoinGape reported, the US SEC filed its settlement agreement with Ripple with the Court last week. As part of the settlement in the XRP lawsuit, the Commission requested that the court vacate the injunction against Ripple and reduce the monetary judgment to $50 million from $125 million.
However, as Judge Torres noted in her ruling on the motion, relief from judgment under the Federal Rule of Civil Procedure is granted “only upon a showing of exceptional circumstances.” She added that both parties have made no effort to satisfy the burden here, as their request doesn’t even mention the rule.
It is worth mentioning that legal expert Bill Morgan had warned that Judge Torres’ decision on the request was still in the air. He stated that the judge must form a view that the settlement is in the public interest.
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