Court Dismisses Claims Against Ripple, But XRP Security Decision Goes to Trial

More twists are unfolding in the long-running Ripple securities lawsuit. The US District Court for the Northern District of California has dismissed most of the claims against Ripple.

The judge's dismissal of major claims gave Ripple a procedural victory in the Oakland class action lawsuit. However, a jury will decide XRP's security status in a trial.

Judge Tosses Out Major Claims Against Ripple

US District Court Judge Phyllis' order granted Ripple's motion for summary judgment on major claims but one. In her ruling, Judge Hamilton gave Ripple procedural wins over major claims against the company and its executives.

The judge discarded state law securities claims and the federal claims for unregistered securities against Ripple.

Additionally, Judge Hamilton ordered the two parties to reconsider filing motions to seal some of their briefs. The court gave them three weeks to file a motion to seal certain exhibits in the lawsuit.

Ripple's Chief Legal Officer (CLO), Stu Alderoty, expressed excitement over the court's recent judgment. He stated his satisfaction that the California court dismissed all claims in the class action.

Also, the CLO acknowledged that the company has just one state law claim left, which will go to trial.

Jury to Decide XRP Security Status in A Trial

Despite the procedural victory for Ripple via the court's dismissals of most class action claims, the core issue is still pending. The court partly denied the company's motion for summary judgment regarding the claim of its CEO's violation of securities laws.

According to Judge Hamilton, a jury will decide XRP's security status in a trial. Moreover, the jury will deploy the Howey Test on the token to determine its satisfaction with the test's criteria before its decision.

Further, the jury will listen to arguments regarding claims over Ripple CEO Brad Garlinghouse's misleading statements." In its filing, the SEC alleged that Garlinghouse violated California's securities laws with deceptive statements.

The regulator claimed the CEO professed to be very, very long on XRP." However, contrary to his claims, Garlinghouse conducted the sales of millions of XRP on crypto exchanges in 2017.

Many have reacted to the latest development on the Ripple vs. SEC lawsuits. Moreover, some speculate on the possible outcome if the jury declares XRP security.

In an X post, a popular legal expert, Fred Rispoli, said there's a high possibility of a settlement between the parties. According to Rispoli, the lawsuit has low damages, and Ripple will possibly get a negative jury verdict if the SEC wins.

Further, the legal expert noted that the issue regarding XRP's security status remains open. So, he believes it will take federal legislation to handle the matter. Therefore, the status of XRP as a security is still uncertain, and many think a potential decision will impact its price.

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