Ripple and R3 Consortium Legal Battle Ends With a Confidential Agreement Between Parties
Ripple Labs Inc. and XRP II, LLC announced officially that the legal battle between Ripple and R3 Consortium ended as the two parties signed a confidential agreement.
According to the official announcement, the two companies, the renowned Fintech venture, Ripple, and the R3 Consortium, which runs more than 200 companies, reached to a settlement hoping to put behind them all the legal conflicts that existed.
The legal battle between Ripple and R3 started on September 8th, 2017, when R3 Consortium forwarded a complaint on Ripple in the Delaware Chancery Court.
That came after the two companies signed a partnership in 2016 which gave R3 the legal right to purchase 5 billion XRP (XRP) tokens valued at $0.0085 per piece until September 2019.
Then, Ripple CEO Brad Garlinghouse allegedly sent an e-mail to R3 Consortium to break the agreement. However, according to R3, Ripple could not terminate the contract. Reportedly, the deal between Ripple and R3 could only be ended if both parties agreed.
Ripple and R3 Consortium signed an agreement and put an end to the legal battle between them
R3 Consortium filed a complaint against Ripple stating that the contract between the two parties allows them to buy that 5 billion XRP tokens at a price stipulated in the agreement, at any time.
Shortly after that, Ripple filed a countersuit before the Supreme Court of California. Ripple Labs Inc. accused R3 of cheating them into entering in the before-mentioned partnership.
“Beginning in 2016, R3 touted itself to Ripple as a leading consortium of banks with whom Ripple should partner. R3 represented to Ripple, among other things, that R3 would work to get Ripple access to R3’s large body of banks, would help promote Ripple’s technology and XRP (XRP) to those banks,” the document filed by Ripple reads.
The document also added that once the contract was signed “R3 disappeared as a partner,” metaphorically speaking.
All that doesn’t matter anymore as the legal battle between Ripple and R3 Consortium ended earlier as the two parties signed a settlement whose conditions will remain confidential.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.