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R3 sues Ripple (What?!)


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Trust me when I say that this is great news for Ripple. My mom, who knows nothing about cryptocurrencies or anything related sent me a news article about this in my email a few hours after the news broke. If that's to mean anything, then it means that A LOT OF NORMAL OLDER FOLKS are going to learn about Ripple and XRP very quickly.

All people remember is "1 Billion dollars" and "XRP value has increased 4000% in the last year".

Edited by hesque
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I actually like this development.  Cryptocurrency has long suffered a stigma of borne of its origins.  These lawsuits, no matter how they play out, legitimise XRP specifically as an asset of significa

The Bloomberg article provides the case numbers:  R3HoldCo. LLC v. Ripple Labs Inc., CA 2017-0652, Delaware Chancery Court Ripple Labs Inc. v. R3 LRC LLC, 15-561205,  Superior Court of Ca

After reading Ripple's response, it's loud and clear, R3 needs Ripple/XRP  much more than Ripple needs R3. Very bullish day for XRP. 

4 hours ago, Apollo said:

Much of the misrepresentations Ripple complained about likely fall under the category of "puffery."  As I understand it court generally expects some amount of talking up the thing that you are selling. Statements like "R3's growing list of member banks" are not going to get Ripple very far.

Nevertheless, there may have been a knowing failure to disclose material information with regard to existing member banks and lack of intent to do anything for a year. From reading the complaint, the strong points of Ripple's case seem to be: 1. A clear obligation to negotiate further contracts and take further action in good faith, 2 a clear lack of any action or attempt by R3 to follow through with what was agreed on, and 3. statements which indicate R3 knowingly failed to fulfill its obligations. 

I would like to know: 1. is an obligation to negotiate in good faith enforceable in CA. Additionally, this is the kind of legal issue which may require very strong facts to prove. So, what does the case law for this issue look like in California? How strong do the facts need to be? 

I recently read a Delaware case which dealt with this issue. It held contracts to negotiate in good faith are enforceable but the set of facts was very clear. I think Ripple may have those facts but it is impossible to tell from one sides complaint..

Yes, there's not a lot of useful speculation we can make on the possible outcome without seeing the other complaint, and crucially - the agreement itself.  I agree with some commentary that a strong case doesn't appear to have been made by Ripple regarding breach of agreement.  Where is the specific clause that relates performance to the option?  I may be missing something, and I didn't read the entirety of the complaint - however, one relevant point I found in Ripple's complaint contains an "excerpt" that to me literally doesn't make any sense to me:

Quote

36. The Option was given as consideration for, and to incentivize the success of, the TPA and Commercial Partnership.  The Option is described in detail in the TPA.  The face of the Option itself states as follows: "This Option [] is issued . . . in connection with that certain Technology Provider Agreement regarding Project Xenon and Potential Commercial Venture[.]" (emphasis added). And the Option was executed after the substantial performance of Project Xenon, because Ripple desired to incentivize R3 to perform its obligations related to the Commercial Partnership.

It reads to me like an unfinished sentence - the Option references the agreements, but that's it.  What's in the ". . ." part, and why is the quote terminated early with a "[.]"?  It appears the  relevant parts that actually *make the case* have been trimmed off.

Perhaps the information from the agreement itself is commercially sensitive, and they're waiting to do reveal it later and request it be kept under wraps?

Also, as @Alluvial mentioned, the "email" quote regarding XRP appears to be particularly weak.  Had the email been discussing "Ripple", or the nature of their partnerships or really simply anything at all other than the price of the asset, it would be stronger.  But that the quote specifically relates to the value of the currency would seem to have far less bearing on the pertinent issues.

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16 minutes ago, T8493 said:

Depends on the wording of a contract. If contract says that Ripple Labs determines what is included in the "XRP Ledger daily volume", then one doesn't need proofs....

Miguel's tweet said as much so I'm inclined to take that part as read. 

Actually, thinking about this - how awesome was it that Miguel jumped on to allay these fears immediately?  I remember the good old days when we'd wait months for a confirmation of something as pertinent to XRP fundamentals as that, and it'd be like drawing blood from a stone.

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This is a monumental fuckup on Ripples part. Whoever did this deal is getting crucified right now. Absolutely foolish to allow R3 to continue to purchase at a fixed rate within a time period of a few years. 

Hell, I understand R3s position. We all would jump at the chance to buy at 0.008 again and then sell at the current price.

 

 

Edited by wildbull1984
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18 hours ago, Duke67 said:

I hope Brad & Co will play this out well. Still, excellent publicity, imo.

How is this good publicity? The fact that Ripple are reneging on a deal they made does not look good at all.

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1 hour ago, hesque said:

Trust me when I say that this is great news for Ripple. My mom, who knows nothing about cryptocurrencies or anything related sent me a news article about this in my email a few hours after the news broke. If that's to mean anything, then it means that A LOT OF NORMAL OLDER FOLKS are going to learn about Ripple and XRP very quickly.

All people remember is "1 Billion dollars" and "XRP value has increased 4000% in the last year".

All  they will learn is that Ripple are reneging on a deal they made, how is that good news? All it says to me is that Ripple cannot be trusted. 

Edited by Guest
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2 hours ago, hesque said:

Nope. All she learned from the headline was that Ripple is worth billions of dollars and has appreciated so much that greedy folks are suing them.

You are all completely deluded, it is what it is. Ripple being sued for reneging on a deal is not good news. Ripple are the ones who are being greedy by not sticking to their end of the deal as xrp is more valuable now. Has your mummy bought any xrp since she saw the article? More than likely not. 

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2 hours ago, Duke67 said:
  • Any publicity is good publicity.
  • People will learn there also is XRP besides of Bitcoin.
  • People will learn that if it's a $1B fight for XRP,  then it's probably good idea to buy some.
  • People will learn that real players (banks backed) will have their own bank-compatible version of bitcoin
  • etc etc etc

Any publicity, is not good publicity, that is just a cliche. If a famous singer or artist is accused of a crime such as **** or assault, does the same apply? If not, why not? Ripple's credibility and trust had been damaged over this, how is a negative news story a good thing?

People can learn about xrp based on the merits of xrp, not because Ripple are reneging on a deal. 

People wont necessarily buy based on this. 

Yes, banks will have their own bank compatible coin, but who says t will be ripple. 

you're all deluded in my opinion, the cult of ripple is alive and well. 

Edited by Guest
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