Ripple faces new legal challenges as a US judge in California greenlights a lawsuit against the crypto firm over allegations that CEO Brad Garlinghouse made misleading statements. The court ruling paves the way for a trial where a jury will determine whether Garlinghouse misled investors during a televised 2017 interview with the Business News Network.

In response to Ripple's attempt to dismiss the claim, arguing XRP is not a security, Judge Phyllis Hamilton acknowledged that while XRP's classification as a security is disputed, it could be deemed as such when sold to non-institutional investors. The judge pointed out that investors may have expected profits from XRP due to Ripple's efforts to promote its use in cross-border payments and other applications.

Despite dismissing allegations related to federal securities law violations, the judge allowed a California state law claim based on a specific 2017 statement to proceed to trial. Stuart Alderoty, Ripple's Chief Legal Officer, emphasized that the court affirmed XRP's status as not a security according to the New York ruling, while noting that the remaining claim involves a minor financial loss and awaits further legal proceedings.

The court's decision also addressed various aspects of the case, including granting summary judgment on certain claims while allowing others to proceed to trial, and deferred judgments on expert testimonies and motions to seal exhibits pending further submissions.

Ripple has not responded to requests for comment from CryptoSlate at the time of reporting.