The ongoing legal battle between Ripple and its investors has taken a new turn as a US district court judge referred the case to a magistrate judge for settlement. This development comes after the court granted in part and denied in part the defendants' motion for summary judgment in the Zakinov v. Ripple lawsuit. The judge's decision has sparked debate in the XRP community, particularly regarding the status of XRP as a security.

Judge Phyllis Hamilton of the District Court for the Northern District of California issued an order in the class-action lawsuit against Ripple, XRP II, and CEO Brad Garlinghouse. While the defendants' motion for summary judgment was granted on federal and state class claims, it was denied on plaintiff Sostack's individual claim under California law. Additionally, the judge denied motions to exclude testimony from various experts.

The case has been referred to Magistrate Judge Robert Illman for resolution between the parties. Notably, Judge Hamilton did not agree with the SDNY court's ruling that XRP programmatic sales are not securities, instead suggesting that investors did rely on Ripple's efforts for profits. This decision has raised concerns among the XRP community about its implications for the Ripple vs SEC lawsuit.

Legal experts, including former SEC lawyer Marc Fagel, have weighed in on the matter. Fagel noted that the biggest concern for Ripple is the SEC using this California case in its appeal against Judge Torres' summary judgment on XRP. However, the court must first determine whether XRP sales were a security to reach the fraud issue. Pro-XRP Bill Morgan and Fagel also emphasized that the lawsuit may not have broader implications even in the case of an adverse finding for Ripple.

In conclusion, the Ripple legal battle has taken a new turn as the case has been referred to a magistrate judge for settlement. While the judge's decision has sparked debate in the XRP community, its implications for the Ripple vs SEC lawsuit remain uncertain. As the legal proceedings unfold, investors and traders are keeping a close eye on the developments, with XRP's price trading range-bound this week.