Ripple is resisting the SEC’s demand for the release of additional Slack communications, calling it a costly “fishing trip” that would take months.
The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) is approaching the closing date for the disclosure phase (August 31). Earlier, the blockchain-based payments company filed its objection to the regulator’s demand for additional Slack notices.
Meanwhile, Ripple has also filed a request to seal documents attached to the SEC’s request for Slack communications, as well as to seal documents attached to the company’s opposition response. Because: The parties are currently not in agreement on what should be sealed.
# XRPCommunity # SECGOV v. # Ripple # XRP Ripple filed a Motion to Seal exhibits attached to the SEC’s Motion regarding Slack communications and to Seal exhibits attached to Ripple’s opposition to the SEC’s Motion. The parties currently do not agree on what should be sealed. pic.twitter.com/wvDQazOBQf
– James K. Filan 🇺 🇸 🇮 🇪 (@FilanLaw) August 17, 2021
According to Attorney James Filan, the company has filed its objection to a motion filed by the SEC. This is intended to force Ripple to search for and submit relevant Slack communications. At the same time, Filan shared the defendant’s recent letter to the court on Twitter.
– James K. Filan 🇺 🇸 🇮 🇪 (@FilanLaw) August 16, 2021
According to the filing, Ripple has rejected the SEC’s “extraordinary demand” for more than a million Slack messages as “burdensome and highly disproportionate” and said the regulator’s request should be denied.
The letter states::
“The SEC’s letter request downplays the extensive intelligence the SEC has already received from Ripple, as well as the reasonable compromise offer Ripple has made to provide additional Slack messages from nine custodians.“
Costs and technical challenges
Ripple rejects the demand for the collection of Slack messages from another 13 custodians, arguing that initial data collection and processing alone could cost nearly $ 1 million.
Ripple’s defense points out that there are “serious technical and other challenges in collecting and managing the unstructured data in Slack.” Less than two percent of the 115,000 Slack documents the company has already collected and processed “have proven to be responsive to the SEC’s production requests.”
This low responsiveness ” refutes the SEC’s claim that the Slack data is a rich source of uniquely relevant data,” Ripple argues, adding that the requested disclosure is an “inappropriate duplication and cumulation” of documents already obtained.
According to Ripple, due to an “error”, the e-discovery provider initially failed to capture direct messages and instant messages with multiple participants. After the oversight was discovered at the end of July, the company assured that it immediately began collecting the necessary data.
Text credit: Cryptoslate
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