R3 blockchain consortium and Ripple Labs reach settlement in XRP token litigation

Ripple Labs, a provider of enterprise blockchain solutions for payments, and XRP II, LLC, have released an official statement on the lawsuit with enterprise software firm R3.

“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,” the statement reads.

The litigation between R3 and Ripple Labs started last September, when R3 filed a lawsuit in Delaware and New York against Ripple Labs, claiming that the latter had violated a prior agreement between them on the purchase of XRP token, CoinTelegraph reported.

In September 2016, Ripple’s former CEO Chris Larsen had signed a deal with R3 that included an option for its partner to buy 5 billion units of XRP token at $0.0085 before the end of 2019. A Delaware judge ruled in favor of Ripple in October 2017.

Subsequently, Ripple filed a counterclaim in California, accusing R3 of infringing on several commitments within the agreement. Earlier this year, a San Francisco state appeals court denied Ripple’s attempt to appeal of an order quashing a lawsuit against R3, Bloomberg reported in March.

When the proceedings began, the value of the contract was worth more than $1 million. However, as the price of XRP surged over the course of several months, the stakes amplified as the 5 billion XRP, as mentioned in the contract, were worth about $3.85 billion.