In a statement published yesterday, Ripple Lab Inc., creators of third-ranked cryptocurrency Ripple (XRP), announced that it had reached a settlement of all outstanding litigation in a lawsuit with New York-based blockchain company R3 surrounding a tranche of cryptocurrency tokens that was at one time valued as high as $19 billion.
The brief statement reads,
“R3 HoldCo LLC, R3 LLC, Ripple Labs Inc. and XRP II, LLC announce that they have reached a settlement of all outstanding litigation between the parties. The terms of the agreement will remain confidential and both sides look forward to putting these disputes behind them.”
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The formerly allied blockchain companies have been in litigation for over a year after a fallout that began in 2017. R3 had originally sued Ripple in September of last year, alleging that Ripple had violated a stipulation in the partnership agreement that gave R3 the right to purchase up to 5 billion XRP tokens at $0.0085 per unit through the end of 2019, reports CCN.
At $0.262, XRP is currently trading at nearly 3,000 percent above the price quoted to R3. Given the terms of the agreement, R3 should be able to purchase the entire $1.3 billion dollar tranche (with XRP’s current trading value) for only $42.5 million. However, Ripple has allegedly refused to uphold the terms of the deal, forcing R3 to seek a court mandate to force Ripple into compliance.
Neither company has provided any further comment on the terms of the private settlement.
As previously reported by Unhashed, Ripple still remains entrenched in numerous class-action lawsuits from XRP investors. The majority of the plaintiffs in these cases have accused Ripple’s distribution of its XRP token as an unregistered securities offering. Ripple won its first case surrounding these allegations last month, and today’s settlement suggests that the San Francisco-based company is prepared to continue weathering the storm of litigation.
Amidst global market downturns, XRP’s price has dropped 21 percent in the last seven days, but the token continues to hold its position as the third-ranked cryptocurrency.