Court Orders Ripple and SEC to Select Three Dates for Possible Settlement Conference

Pro-XRP lawyer believes the SEC and Ripple will schedule a settlement conference in accordance with the court’s recent order.

Following Judge Sarah Netburn’s order regarding a settlement in the SEC v. Ripple case, several XRP community members have suggested that the parties will soon settle.

Judge Netburn Issues New Settlement Order

For context, Judge Netburn ordered the parties yesterday to agree on three mutually convenient dates to schedule a settlement conference if they believe it to be productive at this time.

Fox Business journalist Eleanor Terrett shared the document on her Twitter handle yesterday.

🚨NEW: Judge Sarah Netburn orders both @Ripple and the @SECGov to agree on 3 mutually convenient dates to schedule a settlement conference, “if they believe it to be productive at this time.”

Also recommends scheduling 6-8 weeks beforehand due to the court’s busy schedule. pic.twitter.com/zyU4Ku2OOu

— Eleanor Terrett (@EleanorTerrett) July 17, 2023

The judge expects the parties to schedule the settlement conference at least six to eight weeks in advance due to the court’s busy calendar.

The order asserted that the court would not tolerate any last-minute requests for settlement conferences. It added that the parties should not expect an adjournment of litigation deadlines in response to late requests for settlement meetings.

Meanwhile, the order stirred confusion among some XRP enthusiasts, with many believing the case would settle soon. 

Fox Business’ Journalist Provides Clarity

Interestingly, Terrett took to Twitter to clarify Judge Netburn’s settlement order. According to Terrett, Judge Netburn’s order does not mean a settlement will happen in the next six to eight weeks.

She noted that the order only relates to the parties scheduling a settlement conference six to eight weeks before the desired date due to the court’s busy schedule.

🚨To be clear: Judge Netburn is suggesting that both sides agree on some possible dates for a settlement meeting, *IF* “they believe it to be productive at this time.”

This doesn’t mean we’ll see a settlement in 6-8 weeks. It means that if they do decide on a date, it will have… https://t.co/3bxqCGLyPr

— Eleanor Terrett (@EleanorTerrett) July 17, 2023

The prominent journalist who has followed the SEC v. Ripple lawsuit asked other lawyers, like John Deaton and Jeremy Hogan, to highlight what would happen if any of the parties refused to join the settlement conference or reach an agreement.

Attorney Rispoli Says the Settlement Conference Will Hold

In response, pro-XRP lawyer Fred Rispoli said the SEC and Ripple would schedule a settlement conference to avoid angering the court.

However, attorney Rispoli expects the settlement conference to end in futility like the last two settlement meetings. He added that settlements usually take place when the parties involved finally reach a compromise they can bear.

They will likely schedule one so as not to anger the court. But it will go about as well as the last two settlement conferences before went. Settlement only happens when both parties finally reach the compromise each can stomach.

— Fred Rispoli (@freddyriz) July 17, 2023

Possible Appeal?

It is worth noting that if things happen the way Attorney Rispoli speculated, there is a tendency for one of the parties or both to appeal Judge Analisa Torres’ summary judgment decision.

As reported yesterday, Attorney Bill Morgan said both parties will appeal Judge Torres’ ruling. Recall that the judge issued the much-anticipated summary judgment, which many see as a split victory.

While she ruled that Ripple’s XRP programmatic sales are not securities, she concluded that the company’s XRP sales to institutional investors constitute an investment contract.

Notably, the SEC confirmed in a statement that it is still assessing Judge Torres’ decision to identify its next line of action. SEC Chair Gary Gensler also echoed a similar sentiment yesterday.

Per Gensler, the SEC is disappointed with the court’s ruling on retail investors in the Ripple lawsuit. He added that the commission is looking at that portion of the verdict.