In an apparent victory for the Blockchain-based payment network Ripple, a Delaware judge ruled in their favor regarding the recent lawsuit over R3 consortium’s wish to force the company to make good on a contract to buy a huge volume of XRP. The news broke via Ripple’s Twitter account.
R3, the ‘Blockchain-inspired’ startup servicing banks and financial institutions, maintains that Ripple Labs has violated a prior purchase agreement for XRP tokens between the two companies.
Brad Garlinghouse, Ripple’s CEO, started the Twitter feud, indicating that the judge in the Delaware lawsuit had ruled to ‘throw out’ the case. However, after further information came to light, the judge had issued a verbal ruling regarding Delaware’s jurisdiction over the matter. The lawsuit will proceed, however, in California and New York.
The case, according to others, will continue in California and New York. R3 is suing Ripple for specific performance of an option agreement in which Ripple agreed to sell up to five bln XRPs for a price of $.0085. Ripple has countersued, claiming that R3 reneged on a number of contractual promises, and is simply acting in a spirit of opportunism, after the cryptocurrency soared more than 30 times over.