Manhattan state Supreme Court Justice Charles Solomon ruled Tuesday on Robert "Joe" Halderman's bid to get the attempted grand larceny case dismissed.
Prosecutors say Halderman demanded $2 million to keep quiet about the "Late Show" host's affairs with staffers. Halderman says he just offered Letterman a chance to buy - and keep private - a thinly-veiled screenplay about his life.
The case spurred the late-night icon to tell viewers in October that he had slept with women who worked for him.
The 52-year-old Halderman could face up to 15 years in prison if convicted.