Two Ripple executives named in a federal securities case are scheduled for a jury trial, according to an Aug. 9 court filing.
The upcoming litigation involves Ripple CEO Brad Garlinghouse and Ripple co-founder Chris Larsen. The US Securities and Exchange Commission (SEC) previously alleged that the two individuals engaged in unlawful securities offerings related to the XRP token and aided and supported Ripple’s partially refuted rule violations.
The latest filing indicates the court will hold a jury trial for Garlinghouse and Larsen in the second quarter of 2024.
The parties involved must submit blackout dates before August 23. They must also file several other preliminary applications, including motions, before Dec. 4 in lime trying to exclude evidence from the trial. In addition, they must object to those motions in lime must be before December 18.
Earlier July 13 filings indicate that the defendants disputed whether they “knew or recklessly ignored facts” surrounding securities regulations and whether they actually aided or incited violations on Ripple’s part. This is partly due to Ripple moving away from the XRP Ledger and Larsen’s evolving role in the Ripple ecosystem.
The court ruled that “reasonable jurors” could conclude that the two executives did not commit those actions, granting them a jury trial.
Ripple’s victories
The SEC alleged that Garlinghouse and Larsen sold unregistered securities as part of their wider case against Ripple, which began in December 2020.
On July 13, Judge Analisa Torres issued summary judgment on institutional sales to the SEC and summary judgment on programmatic (or exchange) sales to Ripple, respectively. The latest ruling determined that the XRP token is not a security insofar as it was sold on exchanges in programmatic sales or distributed in other ways.
Ripple announced its victory on July 19, but acknowledged that future court proceedings would involve contractual sales to institutional investors.
It did not mention that further proceedings would involve two of its most notable executives, although the proceedings surrounding Garlinghouse and Larsen were mentioned in Judge Torres’ July 13 decision.
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