According to U.Today, Ripple CEO Brad Garlinghouse has expressed satisfaction with a recent ruling in a civil securities lawsuit against his company, describing it as a 'big win.' Judge Phyllis Hamilton of Northern California's U.S. District Court has allowed the lawsuit to proceed to trial. The lawsuit includes a state law claim based on statements made by Garlinghouse about XRP in a 2017 interview. However, Judge Hamilton dismissed four claims related to Ripple's alleged failure to register the controversial XRP token as a security.
Garlinghouse maintains that the recent California court decision does not negate the New York Court decision. This follows attorney Fred Rispoli's argument that the XRP token might be recognized as a security in California. Garlinghouse has criticized the claim that will go to trial, describing it as an attempt by 'trolls' to manipulate the US legal system to receive substantial class action settlement.
The claim in question relates to a 2017 interview in which Garlinghouse spoke about his 'long' position on the Ripple-affiliated XRP token. Plaintiff Bradley Sostak argues that this statement was misleading as Garlinghouse sold millions of XRPs on various exchanges that year. Garlinghouse also stated in another interview that Ripple was going to drive 'a massive amount of demand' for the token as it was solving 'a trillion-dollar problem.' It is also alleged that Ripple collaborated with a marketing agency when responding to questions from the token's purchasers. Garlinghouse asserts that he stands by his statements and is eager to clarify them during the upcoming trial.