Ripple Labs won a lawsuit against Tetragon Financial Group, and the XRP token received additional stimulus for growth.
The Delaware State Clerical Court ruled in favor of Ripple in a lawsuit filed by Tetragon Financial Group in January 2021. Against this background, the project token, XRP continues to grow rapidly and is already testing the $ 1.95 mark. Over the week, the coin has risen in price by almost 80%.
The court’s decision on Monday, April 12, was announced by lawyer Jeremy Hogan, who retweeted communication from defense attorney James K. Philan.
Ripple’s lawyers ran up $3.4 MILLION DOLLARS in attorney’s fees defending the Tetragon case! Okay, well, I am charging WAY too little then. 🙂 AND, to make it better (or worse depending whose side you are on) Tetragon has to pay it! (1/2) https://t.co/JocnWr332L
— Jeremy Hogan (@attorneyjeremy) April 12, 2021
Filan attached a copy of the Delaware Chancery’s ruling to his tweet. The document says that the court ruled in favor of Ripple Labs in a case in which the plaintiff was Tetragon Financial Group.
Hogan, a partner at Hogan & Hogan Law in Orlando, Florida, commented that legal costs have reached $ 3.4 million. He also added that Tetragon is now on the hook and must pay them within five days of the judgment.
He also added:
I assume that the Ripple/Tetragon contract had a clause in it that the “prevailing party” would receive attorney fees and costs from the other side. Litigation is a high-stakes game and Tetragon not only has to fulfill contractual obligations but pay two sets of lawyers. Ugh.
— Jeremy Hogan (@attorneyjeremy) April 12, 2021
“I believe that the agreement between Ripple and Tetragon contained a clause that the winning party should receive compensation for legal costs from the other party.” In litigation, the stakes are always high, and Tetragon will not only have to meet contractual obligations, but also pay for two teams of lawyers.
Details of the case
In January 2021, the British investment group Tetragon sued Ripple for a $ 175 million share buyback. Ripple Labs called it “opportunistic.”
The claims centered around a 2019 shareholder agreement between Tetragon and Ripple Labs.
Late last year, the US Securities and Exchange Commission (SEC) sued Ripple for raising more than $ 1 billion in illegal XRP token sales since 2013. The regulator argued that the startup violated the Securities Act of 1933.
Then Tetragon applied to the Delaware State Clerical Court with a request to require Ripple Labs to suspend all transactions until it redeems all issued shares in the amount of $ 175 million.
Funding round C
Tetragon was among the largest investors in Ripple during the funding round. From in 2019. It was also attended by the Japanese financial holding SBI Holdings, which by that time already had a joint venture with Ripple (SBI Ripple Asia). In total, the company managed to raise $ 200 million. As a result, its market value rose to $ 10 billion.
Other investors made no claims to the company. Moreover, SBI Holdings stood up for its partner in court.
The Japanese giant has since been actively promoting in the cryptocurrency industry. In 202 SBI bought the Japanese cryptocurrency exchange TaoTao.
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