Securities and Exchange Commission v. Ripple Labs Inc.

What the order addressed

Ripple Labs Inc., Bradley Garlinghouse, and Christian A. Larsen sought to seal or redact documents filed in connection with Larsen’s and Garlinghouse’s motions to dismiss the amended complaint and the Securities and Exchange Commission’s motion to strike Ripple’s fourth affirmative defense. Ripple also sought permission to file a sur-reply—an additional filing responding to arguments raised for the first time in a reply brief.

Sealing standard

The court explained that documents submitted to help decide motions are generally judicial documents subject to a strong presumption of public access. A party seeking secrecy must show specifically how disclosure would cause serious harm, and any sealing or redaction must be narrowly tailored. A confidentiality agreement or protective order alone does not overcome the public-access presumption.

Legal memoranda and related briefing

Larsen and Ripple sought to seal two legal memoranda and redact references to them in the parties’ briefing. The court found that the memoranda and related briefing were judicial documents because they were submitted in connection with dispositive motions and were discussed extensively in the amended complaint and briefing. The court held that Larsen and Ripple had not made the required specific factual showing of harm. It also stated that any sensitive business information could support targeted redactions, not sealing the memoranda in full.

The court therefore denied the motions to seal the legal memoranda and associated briefing. Larsen and Ripple were given until February 17, 2022, to propose specific redactions complying with the order. The court separately denied Larsen’s motion to file redacted versions of the Larsen memorandum, Larsen reply, and the SEC’s opposition, and denied Ripple’s motion to file redacted versions of the Ripple opposition and the SEC memorandum. Those parties were likewise given until February 17 to propose compliant redactions; otherwise, the specified documents would be unsealed as directed by the order.

Exhibit E

Larsen sought to seal an email attached as Exhibit E to the SEC’s opposition and to redact portions of that opposition quoting the email. The court found the exhibit and the opposition were judicial documents relevant to a dispositive motion and noted that Larsen had provided no justification for sealing them. The request was denied. Larsen was given until February 17, 2022, to explain why Exhibit E should be sealed and propose specific redactions; otherwise, the clerk was directed to unseal it.

Exhibits K, L, and M

Garlinghouse sought redactions to three exhibits filed with his motion to dismiss. The court found that he had provided specific facts supporting redaction and that his proposed redactions protected potentially sensitive information while leaving the material relevant to the court’s decision visible. Garlinghouse’s request to redact Exhibits K, L, and M was granted.

Other sealed documents

The court directed the clerk to unseal documents that Ripple and the SEC had filed under seal in anticipation of a sealing request that neither party ultimately made. The order specifically identified ECF Nos. 172-1, 179-4, and 179-5.

Sur-reply

Ripple argued that the SEC’s reply on its motion to strike raised new arguments about whether the court could take judicial notice of information in a private consulting firm’s report. The court found good cause to allow Ripple to respond to those new arguments. Ripple’s motion for leave to file a sur-reply was granted, and Ripple was ordered to file it by February 9, 2022.

Disposition

The conclusion states that the defendants’ motions were granted in part and denied in part. The court denied the specified requests concerning the legal memoranda, related briefing, and Exhibit E; granted Garlinghouse’s request concerning Exhibits K, L, and M; directed the clerk to unseal the identified documents; granted Ripple’s motion for leave to file a sur-reply; and terminated the listed motions.