Ripple CEO Brad Garlinghouse has acclaimed a recent ruling in a civil securities lawsuit against his company as a “huge victory.”
Ripple CEO Brad Garlinghouse has acclaimed a recent ruling in a civil securities lawsuit against his company as a “huge victory.”
On Thursday, Judge Phyllis Hamilton, who presides over the U.S. District Court in Northern California, allowed the lawsuit to go to trial. A state law claim, which centers on statements made by Garlinghouse about XRP in a 2017 interview, has now been allowed to go to trial.
However, Judge Hamilton has rejected four claims that revolved around Ripple’s alleged failure to register the controversial XRP token as a security.
Garlinghouse asserts that the New York Court’s decision has not been in some way negated by the recent California decision.
This comes after attorney Fred Rispoli argued that the XRP token could end up being recognized as a security in the Golden State.
Alex DovbnyaGarlinghouse stands by his ‘misleading statements’
Addressing the lawsuit going to trial, Garlinghouse criticized it as an attempt by “trolls” to game the American legal system to receive hundreds of millions in a class-action settlement.
During the 2017 interview, Garlinghouse discussed his “long” position in the Ripple-affiliated XRP token.
Plaintiff Bradley Sostak argues that the bullish statement was misleading as the Ripple boss sold millions of XRP on different exchanges that year.
In another interview, Garlinghouse also claimed that Ripple was going to generate “a huge amount of demand” for the token as it was solving “a trillion-dollar problem.” Additionally, Ripple reportedly collaborated with a marketing agency in answering questions from buyers of the token.
Garlinghouse says he continues to defend his “misleading statements,” adding that he hopes to shed light on them during the upcoming trial.
