Ripple Labs reaches an agreement with R3 Consortium in token litigation
In a major development, Ripple Labs Inc. has announced it has reached a settlement “of all outstanding litigation” between R3 Hold Co LLC, R3 LLC, and XRP II, LLC, according to a press release published on September 10.
As per the statement, the details of the settlement will remain confidential while “both sides look forward to putting these disputes behind them.”
The genesis of the legal skirmishes between these two parties goes back to the summer of 2016 when Ripple’s former CEO Chris Larsen made a fateful decision and signed a deal with a bank consortium R3. The agreement included an option enabling R3 consortium to buy up to 5 billion XRP tokens, in part or in whole, at a price of $0.0085 before the end of 2019.
A brief history of the face off
In September 2017, the consortium filed a lawsuit in Delaware and New York against Ripple Labs. R3 then claimed that the company had violated a prior purchase agreement between the two companies for XRP tokens.
Ripple further filed a counterclaim in California, accusing its former partner of infringing on a number of commitments associated with the agreement.
In March 2018, a San Francisco state appeals court denied Ripple’s filing to appeal the order that dismissed its lawsuit against R3.
This latest development comes as a major relief for the startup, which has been involved in several legal battles over the last year. In May, investor Ryan Coffey filed a lawsuit over whether or not the XRP token is a security and alleged that the company’s sale of XRP tokens violates U.S. securities laws.
Ripple has always maintained that XRP, which was created before Ripple had officially begun, is not a security. In case it is a security, defined as investment in a common enterprise with a worth that can be influenced by a promoter, the company has to go through stringent requirements for registration and declaration.
Earlier on September 8, Brynly Llyr, general counsel, Ripple exited the company after having been its top legal officer for two and half years. She joined the startup in 2016. However, her decision to part ways with the company has surprised many.
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