- R3 Holdco charge Ripple Labs Inc. with failing to pay 5 Billion XRP under the partnership agreement.
- Ripple labs loses the bid of the long litigation fight.
- XRP/USD continues falling after a failed recovery attempt.
San Francisco: Blockchain developer Ripple Labs Inc. was defeated in a recent litigation with former partner R3 Holdco. R3 Holdco claims that Ripple Lab failed to pay 5 billion Ripple coins under the partnership agreement, whereas, Ripple accuses R3 of misleading representation.
Nevertheless, San Francisco-based Ripple Labs lost its shot at a home-court advantage, being denied the privilege of home-court hearings, as San Francisco state appeals court denied Ripple Labs’ bid. Ripple Labs Inc. therefore lost its bid in the dispute with rival R3 Holdco over ownership right to XRP that was once worth above US$16 billion.
Lawsuit between Ripple Labs and R3 Holdco arose after the partnership broke up. Ripple claimed that R3 entered the arrangement on false pretenses, and R3 claimed that Ripple illegally declined to honor an agreement to hand over 5 billion XRP coins. Ripple Labs filed suit in California, while R3 filed suit in New York and Delaware. However, the Delaware suit was dismissed in October.
The New York court would probably be the sole decider since the San Francisco state appeals court have denied Ripple’s bid to fast-track an appeal of an order repealing a litigation against R3. Ripple Labs has argued that it would face “irreparable injury” if it has to fight on R3’s territory in Manhattan.
The resistance $0.8300 proved to be too strong for XRP bulls. The coin came close to the above-said level only to face more selling pressure. Currently, XRP/USD is trading at 0.7760, down over 1% on the day. From the longer-term perspective, Ripple is consolidating in a narrow range with the lower boundary at $0.7600 with the moving averages cross sending a bearish signal.
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