In a recent development, Attorney John Deaton, Managing Partner of the Deaton Law Firm, shed light on the potential consequences of Ripple Labs’ civil case. The action, which gives XRP investors in the United States the opportunity to sue Ripple for allegedly selling unregistered securities, has raised concerns in the XRP community about its implications on the ongoing SEC vs. Ripple case.
During a debate, an XRP fan asked Attorney Deaton a critical question about both litigations. In response, Deaton stated that if Ripple loses to the SEC, XRP holders will not be paid for several years. He explained that XRP holders will only be entitled to compensation if Ripple’s appeal against the SEC is unsuccessful.
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Deaton went on to discuss the likely next steps if Ripple loses the SEC case. He expects Ripple to appeal the verdict and anticipates a protracted legal process lasting two to five years. Deaton speculates that if Congress does not intervene, Ripple may even take the case to the Supreme Court.
Deaton points out that if the Supreme Court rules in favor of Ripple over the SEC, the company would have won outright.
@JohnEDeaton1 if this verdict goes against ripple and the judge says XRP is a security, could we find that more XRP holders join the case that are suing ripple in Oakland CA, rather than waiting for appeal via a Supreme Court decision around the year 2030?
— XRP-Wing Commander Porkins 75k_JD QoS (@XRP_Red6) July 6, 2023
In the event that Ripple exhausts all possible appeals, including those to the SEC and the civil lawsuit, Deaton argues that the regulatory agency, not the civil plaintiff, would be responsible for collecting the money. The SEC claims that Ripple raised $1.3 billion through XRP sales and that if Ripple loses, the SEC will create a fund to pay XRP holders, effectively overshadowing the civil complaint.
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Deaton offers an intriguing perspective, arguing that if he were the plaintiff’s counsel in the civil action, he would prefer the SEC to lose. He believes that if the SEC wins, the damages awarded in the civil action will be significantly reduced.
If Ripple loses to the SEC there won’t be any money collected for years and ONLY if Ripple loses on appeal. If the Supreme Court takes it on appeal (which I believe they will if Congress hasn’t acted by then), I believe Ripple hands down wins with this Supreme Court. If the SEC… https://t.co/0xHw266YXf
— John E Deaton (@JohnEDeaton1) July 6, 2023
Furthermore, Deaton believes that the SEC fund would provide greater compensation to XRP investors than the civil action. Attorneys in civil cases are typically entitled to 25-35% of the recovery money as attorney fees. The remaining money would be distributed among XRP holders after deducting their percentage and the cost of the litigation.
Finally, Attorney Deaton provides valuable insights into the likely outcomes of the current Ripple legal challenges, emphasizing the importance of the SEC ruling and its implications for XRP holders.
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