u.today
The ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs continues with a new court ruling.
The court has now ruled on the parties' motions to preclude expert testimony from consideration at summary judgment and trial.
In the ruling, Judge Analisa Torres granted some of the motions and denied others, with neither the plaintiff nor the defendants gaining the upper hand.
However, one of the key outcomes of the ruling was the exclusion of Expert No. 1, Patrick Doody, from testifying about the perceptions of a reasonable XRP purchaser.
It is worth noting that the SEC had previously hired Doody to analyze the expectations of token purchasers, but the judge has now granted Ripple's motion to exclude his testimony.
The exclusion of Doody's testimony has implications for the SEC's case, as the agency has to prove that investors had a reasonable expectation of profits from Ripple's efforts. Without Doody's testimony, it is unclear how the SEC will prove "reasonable" reliance.
Scott Chamberlain, a lawyer with Seward & Kissel, commented on the ruling on Twitter, stating that neither side got everything they wanted due to the lack of impeccable arguments. However, Chamberlain praised Judge Torres for being "sharp, rigorous, and utterly impartial."
Jeremy Hogan, an attorney who has been following the Ripple case closely, also took to Twitter to express his thoughts on the ruling. Hogan noted that the SEC's only expert witness on the subject of "reasonable" expectation of profits had been struck down, leaving the agency in a difficult position.
The exclusion of Doody's testimony is a setback for the SEC, but the agency is expected to continue pursuing its case against Ripple and its leaders.
The SEC filed a lawsuit against Ripple and its senior leaders, Brad Garlinghouse and Chris Larsen, accusing them of illegally selling securities in violation of U.S. securities laws.
As reported by U.Today, Brad Garlinghouse fully expects the lawsuit to be decided this year.