A California federal judge in the US stated that the lawsuit against Ripple Labs and CEO Brad Garlinghouse will not result in "summary judgment" but will continue with the court process. The judge emphasized the possibility that sales of XRP to small investors could be securities sales.
A person named Bradley Sostack filed a lawsuit, stating that Garlinghouse sold millions of tokens in 2017 after his statements that "I'm looking long-term for XRP". Judge Phyllis Hamilton denied a motion to continue the case on summary judgment, which will start the trial process.
Plaintiff Sostack alleges that Garlinghouse misled investors and violated securities laws. If the court rules that sales of XRP to small investors are sales of securities, Garlinghouse could be found to have violated the law. In the Ripple-SEC case, the judge's ruling that retail sales of XRP were not securities but institutional sales were was characterized as a partial victory.
Despite the judge's ruling, XRP price has not seen a significant drop and is trading at $0.49 at the time of writing.
