R3 and Ripple Labs reach settlement in 5 billion XRP cryptocurrency lawsuit

In a remarkable turn of events, Ripple Labs announced through a press release that it has reached a settlement with R3 HoldCo LLC, XRP II, LLC and R3 LLC. The announcement came on 10 September and as per the statement, “both sides would keep the terms of the settlement confidential and look forward to putting these disputes behind them.”

Litigation History

It was in the month of September last year when the litigation between R3 consortium and Ripple Labs started. R3 consortium initiated it by filing a lawsuit against Ripple Labs in the Delaware Chancery court. R3 alleged through the lawsuit that Ripple Labs violated a purchase agreement for XRP tokens, earlier signed by both the companies. It further stated that the agreement legally enabled R3 to buy up to 5 billion XRPs at the rate of $0.0085 per unit by the September 2019. However, Ripple Lab’s CEO Brad Garlinghouse tried to end the contract through an email sent to R3 chief executive David Rutter.
In October last year, a Delaware judge refused to provide any relief to R3 consortium citing lack of jurisdiction. It forced R3 to pursue its litigation in New York and California. Subsequently, Ripple Labs launched a counterclaim in California, accusing R3 of making several violations against the terms of the agreement. Meanwhile, the value of 5 billion XRPs rose tremendously during this time, raising stakes for both the litigants. In March 2018, California state appeals court denied Ripple’s bid to fast-track an appeal of an order quashing a lawsuit against R3.

About R3 and Ripple

R3 consortium was founded in September 2015. It was established with the backing of nine of the largest investment banks in the world to test blockchain technology for various financial applications. Later, its membership grew to around 80 financial institutions.
Ripple also works with large banks and focused on blockchain-based cross-border payments. It is backed by SBI Holdings, Standard Chartered PLC, Accenture PLC.

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