U.S. District Judge Mary Kay Vyskocil of the Southern District of New York on Thursday allowed electric vehicle startup Canoo to move forward with a lawsuit against one of its investors, DD Global Holdings, amid a disagreement about disgorgement of “short-swing” profits that Canoo claims DD Global realized.

Vyskocil denied DD Global’s motion to dismiss, rejecting arguments from the investor’s attorneys at Skadden, Arps, Slate, Meagher & Flom that the court lacked personal jurisdiction and that Canoo failed to state a claim.