Ripple Labs Inc., the company behind Ripple’s cryptocurrency platform, has lost the opportunity to sue R3 for a contested contract in its home state of California. Ripple lawsuit will take place in New York.
R3 lawsuit against Ripple
In September 2017, the R3 company filed a lawsuit against Ripple in Delaware and New York, claiming that the defendant violated the agreement between the companies to purchase the cryptocurrency XRP. This is one point of the contract, which allows R3 to buy 5 billion XRP coins at a fixed price of $ 0.0085 at any time until the end of 2019.
Ripple filed a counterclaim in California, accusing the former partner of violating several of the obligations associated with this agreement.
A few months later, the exchange rate of XRP significantly increased. Currently, 5 billion XRP tokens cost about $ 3.85 billion.
The San Francisco Court of Appeal had denied the Ripple’ petition to appeal the order under which the lawsuit of the startup against R3 was rejected.
The lawsuit, which put two former partners in severe legal battles, started when Brad Garlinghouse tried to make option contract in June 2017 by email to David Rutter, CEO of R3. R3 sued Ripple for breach of contract in a Delaware court, but the court rejected it. Now the outcome of the trial depends on the decision of the New York court.
Charges against R3
Ripple accused R3 of trying to take advantage of the partnership to steal the company’s developments, and then use it to develop a competing product. The company also stated in the lawsuit that it had the right to terminate the contract, since R3 did not help the company to register any bank on its platform and hid information about the exit of several large banks from the consortium, such as JP Morgan, Morgan Stanely and Goldman Sachs.
Meanwhile, representatives of Ripple claim that the lawsuit in New York will cause the company “irreparable injury.”
The news had a negative impact on the XRP exchange rate. Currently, Ripple token is trading at $ 0.75.