Judge rejects SEC and Ripple’s proposed settlement deal, upholds $125M penalty!

Parties will need to refile their motion under the correct rule and demonstrate 'exceptional circumstances' that warrant the court changing its decision.

A federal judge has denied a joint request by the SEC and Ripple Labs to approve a settlement that would have sharply reduced Ripple’s $125 million civil penalty and lifted a standing court injunction against future securities violations, according to an update from defense lawyer James Filan.

In a ruling dated May 15, US District Judge Analisa Torres dismissed the joint motion, which had been filed earlier this month. The motion sought the court’s approval to dissolve a permanent injunction previously issued against Ripple and to reduce the civil penalty from $125 million to $50 million.

In her order, Judge Torres stated that the request was filed improperly. Although it was presented as a motion for settlement approval, it was, in fact, a request for relief from the court’s August 2024 final judgment.

Such a request must comply with Rule 60, which requires a significantly higher legal standard—specifically, a showing of “exceptional circumstances” to justify relief from a final judgment.#RippleSECSettlement