XRP Lawsuit: John Deaton Highlights Two Scenarios to Determine Settlement Decision

John Deaton, the lawyer that represents over 70,000 XRP investors in the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC), has recently highlighted two possible scenarios that would determine whether the lawsuit will end in a settlement or a summary judgment needs to be decided by the Judge.

The lawsuit that was filed by the SEC in December 2020 against Ripple, the San Francisco-based cross-border payment firm, is estimated to end by March 2023. However, many crypto pundits have been predicting a possible settlement.

Read Also: Attorney John Deaton to SEC: Go After Ripple If You Have a Case, but Don’t Hurt XRP Investors

In a series of tweets on the 11th of September, Attorney John Deaton stressed the possibility of a Settlement and what must happen before a settlement can be considered in the XRP lawsuit.

According to Deaton, the settlement of the lawsuit depends on whether the SEC must release the Hinman speech drafts, edits, emails, and comments thereof.

Aside from turning over the emails and drafts, he said another event that could facilitate a settlement is “if the SEC receives a [unfavorable] decision in the @LBRYcom case.” He stated that he’s more convinced that there will be no settlement unless one or both of those things happen.”

Two Scenarios for XRP Lawsuit Settlement

In the long thread of tweets, John Deaton shared two scenarios that will dictate a settlement and a decision on summary judgment.

In Scenario One, Deaton wrote, “Scenario One: SEC receives a victorious ruling from Judge Torres overturning Judge Netburn’s Order that the SEC must turn over the emails, comments, drafts and edits. Result: No settlement. Summary Judgment Decision. Odds of Scenario One happening: 5%.”

For Scenario Two, Deaton wrote, “Scenario Two: Judge Torres Affirms Judge Netburn’s decision and orders the documents turned over. Result: The SEC seeks certification for an interlocutory appeal to the 2nd Circuit. I don’t believe Judge Torres will certify. The SEC seeks a Writ of Mandamus.”

Read Also: Ripple-SEC Case: SEC Request for another Time Extension to File Objection to John Deaton’s Amici Request

The lawyer representing XRP investors further added that all his points still depend on timing. He said the SEC’s delay tactics could run out of time by the end of the year if Judge Torres rules that the documents must be produced as soon as possible, which could force a settlement. But the reverse would be the case if she delays her ruling, John Deaton emphasized.

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