Attorney Representing Ripple Labs and CEO Brad Garlinghouse Requests Withdrawal Amidst SEC Lawsuit
In a major development within the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the prominent attorney representing Ripple Labs and its CEO, Brad Garlinghouse, has formally requested to withdraw from the case.
The request for withdrawal comes in the aftermath of a significant ruling by Judge Analisa Torres. The case has also caught the attention of Magistrate Judge Sarah Netburn, who has encouraged both Ripple and the SEC to explore the possibility of settling other aspects of the lawsuit.
According to the filing made on July 27 in the District Court for the Southern District of New York, Ripple submitted a motion for the withdrawal of Lisa R. Zornberg from Debevoise & Plimpton LLP as the attorney representing the defendants. The company explained that Lisa R. Zornberg would no longer be associated with the law firm after July 31.
Despite this move, Ripple assured that the interests of the defendants, including Brad Garlinghouse and co-founder Chris Larsen, will not be adversely affected. The legal representation for Ripple Labs in the lawsuit will continue through other attorneys from Debevoise & Plimpton LLP.
Adding to the changes in legal representation, another attorney, Anna R. Gressel, filed a motion to withdraw as an attorney for Ripple Labs on July 12. Ripple also requested the court’s approval for the withdrawal of Anna R. Gressel from Debevoise & Plimpton LLP, citing that she is no longer associated with the law firm as of July 12.
The case has seen additional attorneys, Clayton J. Masterman and Kylie Chiseul Kim, granted approval for their withdrawal from the lawsuit.
Following the recent ruling and disclosure of Ripple’s future plans, there was a notable surge in the price of XRP. John E. Deaton, an XRP holder and lawyer, emphasized that even if SEC Chair Gary Gensler seeks an appeal, XRP will likely retain its classification as a non-security for at least two years. Deaton based this prediction on the complexities the SEC may face in altering its stance on the matter.
In response to the ongoing developments and the evolving legal landscape, Judge Analisa Torres has entrusted Magistrate Judge Sarah Netburn with overseeing the Ripple vs. SEC lawsuit. Magistrate Judge Netburn has directed both parties to negotiate and agree on three mutually convenient dates to schedule a settlement conference. The objective of this conference is to address crucial issues, including the institutional sales of XRP, and explore the possibility of resolving the case outside of court.
Amidst these legal proceedings, it is worth noting that Lisa R. Zornberg, the attorney seeking withdrawal from the Ripple case, was appointed as City Hall Chief Counsel by New York City Mayor Eric Adams this week, signaling her transition to a new role within the city’s administration.
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