Crypto

R3’s lawsuit against Ripple balloons to $19 billion

Ripple price surge has led to an over the top increase in R3’s lawsuit against Ripple that is now valued at nearly $19 billion.

R3 and Ripple have filed lawsuits against each other regarding a contract dispute that arose after the dissolution of their once-promising partnership that was announced in 2016. R3 dragged Ripple to court first claiming that the latter violated the partnership agreement by terminating an options contract that gave R3 the right to purchase up to 5 billion XRP.

R3 asked the court to order Ripple to honor that agreement, which would allow the firm to purchase the 5 billion XRP — now worth $19.2 billion at its Jan. 4 high — for just $42.5 million, a discount of approximately 99.8 percent off the market price.

If R3 manages to win the suit, it will garner five per cent stake in XRP at virtually no cost and provide the firm with a tidal wave of capital at a time when it has struggled to raise funding from its consortium members.

Ripple countersued R3 arguing that R3 failed to fulfill its obligations under the partnership agreement, nullifying its right to exercise the XRP options.

Both firms have seen small victories in the legal conflict. In October, a Delaware judge dismissed R3’s suit, ruling that it did not fall under the court’s jurisdiction. However, Ripple experienced a similar setback in December, when a California judge ruled that it did not have jurisdiction over Ripple’s countersuit against R3.

The legal showdown will now head to New York, giving the New York City-based R3 home-court advantage, so to speak, for the final judgment on the $19 billion options contract.

About the author

David Bizley

David Bizley

David Bizley has worked on Oilfield Technology. While performing editorial role, he also works as a contributor and is actively involved in the commissioning of material for both the magazine and its expanding online presence.

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