Ripple Labs Inc., the company that provides the Ripple payment protocol, a crypto exchange, a remittance network and the XRP token has reached a settlement with R3 HoldCo LLC, R3 LLC, and XRP II, LLC regarding all outstanding litigation. Details on the settlement are confidential, as both parties look past their legal disputes.
An Altcoin Battle’s Litigation
The legal proceedings between Ripple Labs and R3 Consortium, a blockchain development company had begun in September 2017. During this time, R3 filed a lawsuit against Ripple Labs in Delaware and New York, claiming that Ripple was in violation of a prior purchase agreement the two companies had negotiated.
The agreement centered on Ripple Lab’s XRP tokens. It laid out the option that allowed R3 to buy 5 billion XRP tokens for $0.0085 apiece, partially or entirely, right before 2019 would come to a close.
When the litigation initiated, the disputed contract was worth over $1 Million. However, as the price of XRP grew in the progressing months, the 5 Billion XRP in the contract amassed about $3.85 billion in value.
The case was dismissed in Delaware, which lead R3 to seek legislation in the states of New York and California. In response, Ripple Labs filed a counterclaim in California, arguing that R3 had infringed various obligations stated in the agreement.
Ripple’s Counter Case
In the counterclaim that followed at the Supreme Court in California, Ripple Labs contended that there had been an agreement on a joint commercial venture. Although R3 Consortium agreed to the deal, it did not fulfill its end of the bargain.
Ripple also claimed that R3 had obscured the fact that several of its consortium members were in talks of leaving the group, in spite of their promise to promote the XRP token via a use case within their companies. These members include Banco Santander and Goldman Sachs.
In March 2018, a San Francisco state appeals court rejected Ripple’s counter case to appeal the order that had dismissed its lawsuit against R3.
This legal skirmish has not been the only one for Ripple Labs, which has been embroiled in several battles during the past year. In May, the XRP token’s obscure status as a security led investor Ryan Coffey to file a lawsuit against Ripple. Coffey claimed that the sale of XRP tokens breached U.S. securities laws, that he had lost $551.89 while trading the altcoin and that it is not decentralized.
He claimed that while trading XRP tokens, he lost $551.89, also stating that XRP is not genuinely decentralized. The U.S. Federal District Court of the Northern District of California recently denied a motion against Ripple.
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