The US Court of Appeals has set a schedule concerning the Ripple lawsuit, stating that Ripple Labs and its CEO, Brad Garlinghouse, need to follow it and that otherwise the appeal could be nullified.
This decision was made after an appeal was lodged against the district court’s decision that was issued prior and favored Ripple. This case has gained a lot of traction owing to the broader implications for the cryptocurrency industry and has already drawn attention due to the alleged securities violations.
The appeals court instructed that a docketing notice should be issued in relation to the appeal, in reference to the case Sostack v. Ripple Labs This appeal is against the order of the district court with regard to motions filed by Ripple and Garlinghouse.
Now, the appellant, Bradley Sostack here wishes that order reversed because, according to him, Ripple Labs, XRP II – LLC, and Garlingouse committed securities fraud. On the other hand, however, the appeal is rather dependent on the timetable provided by the law, and both parties are obligated to follow it because the case could suffer otherwise.
The court had provided a scheduling order which lists important dates for the parties involved. The appellant, Bradley Sostack, must finish and file the Mediation Questionnaire on the 29th day of January. Subsequently, the opening brief of appeal shall be submitted by the 6th of March. This brief will highlight Sostack’s case against Ripple Labs and Garlinghouse for the breach of securities laws.
The deadline for Ripple Labs and Garlinghouse’s answering brief, which will seek to rebut Sostack’s allegations, is 7th April 2025. This submission is crucial because it is the first serious opposition to the case made by the appellant, and it will also present the other party’s side of the argument and defense.
The case’s impact could be wider than just Ripple and extend to the entire cryptocurrency space. If the court rules in favor of the appellant, it could have serious implications, especially with regard to the Rex lawsuit Ripple Labs are already fighting. There are those who claim the ruling in this case will set the tempo for all company operating in the cryptocurrency sphere and how they’ll be treated in the USA.
Also, the court has accepted the optional reply brief, which is to be filed within 21 days following the submission of the answering brief. This additional filing may provide Ripple Labs with one more chance to explain its position or address novel issues raised for the first time by Sostack.
Cost of legal proceedings is yet another angle in the case that needs concentrating on. Sostack filed an appeal against the costs taxed by the clerk to the class plaintiffs and which have been claimed to be $210,591.52. This appeal raises concern about the impact it will have from a financial perspective whilst adding another complication to the legal processes.
Ripple Labs, on the other hand, has filed a bill of costs, requesting the payment of expenses resulting from the prolonged litigating of the case. Ripple claims that the case has caused additional delays and expenditures which were not required. All these factors were taken into consideration when the district court decision was made in favor of Ripple.
Attorneys suggest that eithe.r a settlement or a dismissal may occur during the April to May timeframe owing to the pace at which the appeal is moving. Some reports indicate that the Trump administration might withdraw from additional appeals which would effectively conclude this ongoing legal combat.
The outcome of this case remains an enigma and while Ripple and — CEO Garlinghouse continue to seek an end to the lawsuit, many individuals in the crypto space are watching closely for the verdict’s broader consequences.
In the interim, Ripple is shifting its focus to aim for a positive outcome from the lawsuit’s financial impact and Sostack with his legal team persist in trying to overturn the previous decisions. This ruling, in all likelihood, would determine the future of digital currencies in the US and create some governance for these sorts of cases in the times to come.
