Ripple Labs Enters Legal Dispute With R3

Ripple Labs Enters Legal Dispute With R3


Ripple Labs Inc and R3 Hondco LLC filed lawsuits against each other on Friday. The suit is in relation to Ripple’s attempted termination of a 2016 options contract that grants R3 the right to purchase up to 5 billion XRP tokens at $0.0085 USD each until September 2019.

Also Read: New Podcast Episode With Stefan Thomas of Ripple Labs

R3 Has Sued Ripple Over Attempting to Terminate the 2016 Options Contract via E-Mail

Ripple Labs Enters Legal Dispute With R3

Ripple Labs and R3 Holdco LLC agreed upon the deal in September 2016, which was formalized through the issuance of an options contract to R3. The lawsuit alleges that Brad Garlinghouse, Chief Executive of Ripple, sought to terminate the options contract via an email which was sent to R3’s Chief Executive, David Rutter. R3 has sued Ripple in response to the email, arguing that the contract cannot be unilaterally terminated.

R3 is asking the court to rule that R3 is entitled to all rights outlined in the 2016 contract. With XRP tokens now trading for more than $0.20 each, the contract would entitle R3 to purchase tokens from Ripple Labs before immediately selling them for an approximate gain of over 2000%.

Ripple Labs Has Counter Sued R3 Over Accusations of Failing to Live up to a Different Partnership Between the Two Companies

Ripple Labs Enters Legal Dispute With R3

Ripple counter-sued R3 in San Francisco, alleging that R3 had failed to deliver on a different partnership agreed upon by both companies that would give Ripple access to R3’s consortium of financial institutions in exchange for 15% of any revenue generated by Ripple through commercial partnership with banks associated with R3. Ripple’s suit also alleges that R3 touted major institutions like Goldman Sachs and JP Morgan, who exited R3’s network shortly after the establishment of the deal Ripple has requested that court declare to be invalid, and to mandate that R3 pay damages to Ripple.

Must READ:   Six Ways to Ruin Your ICO Before It’s Even Started

A representative of Ripple labs has stated that the company’s “filing is straightforward – R3 misrepresented their ability and intent to deliver on their commitments. Given XRP’s ~4000 percent increase over the course of the year, R3 suddenly wants to tap into the value of XRP, though the facts are clear that they did not earn any option based on our agreement.” R3 has stated that it “does not discuss the details of pending litigation. We are confident in our position and hope for a speedy resolution of this matter.”

Whose lawsuit do you think the court will recognize? Share your thoughts in the comments section below!

Images courtesy of Shutterstock, R3, and Ripple Labs

At there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. 

12 Replies to “Ripple Labs Enters Legal Dispute With R3”

  1. You actually make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complex and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

  2. Hello there, simply became alert to your weblog through Google, and found that it’s really informative. I am going to be careful for brussels. I will appreciate for those who proceed this in future. A lot of other folks shall be benefited out of your writing. Cheers!

  3. There is great developments on the design of your blog, I certainly love this. My own is dealing with forex strategy generator and now there are a lot of things to be done, I’m yet still a novice in internet site design. Thanks!

  4. I do trust all the concepts you’ve offered to your post. They’re really convincing and will definitely work. Still, the posts are too brief for newbies. Could you please prolong them a bit from next time? Thanks for the post.

  5. I felt amazing to read this article and I feel you’re completely right. Let me know in case you are considering how to watch free movies online, this is my principal competency. I hope to hear from you soon, cheers!

  6. Al Hadi AC Refrigration and Repairing is committed to giving your ACs a new lease of life. We have a team of experienced professionals which has serviced more than a 1000 units, much to the satisfaction of our clients. The effort at Al Hadi has always been to service a call in the shortest span of time and to close it with a happy client. The referrals we get is a testimony to our work. Try our services today!

Leave a Reply

Your email address will not be published. Required fields are marked *