Ripple CEO Brad Garlinghouse has hailed a recent ruling in a civil securities lawsuit against his company as a "big win."
On Thursday, Judge Phyllis Hamilton, who leads Northern California's U.S. District Court, allowed the lawsuit to go to trial. One state law claim, which centers around statements made by Garlinghouse about XRP in a 2017 interview, has now been allowed to proceed to trial.
However, Judge Hamilton has shot down four claims that revolved around Ripple's alleged failure to register the controversial XRP token as a security.
Garlinghouse claims that the New York Court decision has not been somehow negated by the recent California decision.
This comes after attorney Fred Rispoli argued that the XRP token might end up being recognized as a security in the Golden State.
Alex DovbnyaGarlinghouse stands by his "misleading statements"
While addressing the claim that will go to trial, Garlinghouse slammed it as an attempt by "trolls" to game the US legal system to receive hundreds of millions in class action settlement.
During the 2017 interview, Garlinghouse spoke about his "long" position on the Ripple-affiliated XRP token.
Plaintiff Bradley Sostak argues that the bullish statement was misleading since the Ripple boss sold millions of XRPs on different exchanges that year.
In another interview, Garlinghouse also stated that Ripple was going to drive "a massive amount of demand" for the token since it was solving "a trillion-dollar problem." Moreover, Ripple allegedly collaborated with a marketing agency when answering questions from the purchasers of the token.
Garlinghouse claims that he continues to stand by his "misleading statements," adding that he is looking forward to shedding light on them during the upcoming trial.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team