Ripple Asks Court to Seal Sensitive Documents in SEC Case
Ripple Labs requests the court to seal sensitive documents in the SEC case to protect its financial data and competitive position from public disclosure.
On May 13, 2024, Ripple Labs requested that the United States District Court for the Southern District of New York seal several documents linked to the SEC’s Motion for Judgment and Remedies. These “Remedies Materials” contain sensitive financial data, including audited statements, revenue, and expenses.
Ripple’s attorney, Andrew J. Ceresney of Debevoise & Plimpton LLP, detailed the reasons for the request in a letter to Judge Analisa Torres. He argued that public disclosure would harm Ripple’s competitive position by exposing detailed information about its financial condition, business plans, revenue streams, and expense structures to competitors and customers.
Protecting Confidential Financial Information: Ripple stresses the importance of keeping its audited financial statements and related materials confidential. Ceresney argues that disclosing these non-public documents would significantly harm Ripple’s business interests and competitive standing. The documents contain crucial financial metrics that are vital to maintaining Ripple’s market position.
Maintaining Negotiating Power:Ripple aims to protect the details of its financial terms with third-party partners. Revealing the terms of XRP sales could undermine its competitive edge and future negotiation power. The motion explains that disclosing these terms could damage Ripple’s negotiating position with future partners and allow competitors to adjust their strategies to compete more effectively.
Ensuring Privacy for Non-Parties: Ripple seeks to redact the identities of XRP investors, customers, and business partners. The company argues that these identities are irrelevant to the case and could be misused if disclosed. The motion states that protecting these identities outweighs the public’s right to access, as their disclosure poses unnecessary risks to the individuals and entities involved.
Ripple’s legal team points out that the SEC has not opposed several of the sealing requests, which could favor their motion. The motion cites previous cases where similar requests were granted, suggesting a strong precedent. Pro-XRP lawyer Bill Morgan commented, “A company has every right to protect commercially sensitive information. Ripple’s need to seal information on discounts stems from the SEC's evidence and its weak argument that sophisticated institutional investors suffer pecuniary harm.”
By seeking to seal the “Remedies Materials,” Ripple aims to safeguard its competitive edge and protect sensitive business information. Preventing the disclosure of detailed financial data and business plans helps Ripple maintain its market position and secure future negotiations.
Ripple’s request to seal documents in the SEC case highlights the need to protect sensitive financial and business information in legal disputes. The court’s decision could set a precedent for handling similar cases in the future, balancing public access and proprietary business strategies. As the case progresses, the outcome will be closely watched for its implications on Ripple and the broader crypto industry.
