Ripple Wins Case Filed by Tetragon Financial
Ripple Labs has received another success in its legal case with Tetragon Financial Group Limited. After the court has passed a decree on March 05 that Tetragon is not eligible for stock redemption from Ripple, with rejection of appeal from Court of Chancery of the State of Delaware.
The court considered Tetragon’s assertion that a “securities default” is false, as there is presently no formal decree on the standing of XRP. Hence, Judge Morgan Zurn did not accept Tetragon’s demand for a prefatory injunction, and boosted the earlier enforced injunction prohibiting the sale of XRP.
The UK headquartered asset administration company controls only 2% of Ripple’s equity. Nevertheless, the biggest contributor to a Series C financing round that saw Ripple amass $175 million filed case on Ripple to repurchase its tokens following the filing of lawsuit by SEC, stating that it “triggered the risk of irreparable harm.”
As Law360 states, the Chancery Court of Delaware has also objected Tetragon’s plea for an appeal with the state Supreme Court. Judge Zurn detailed in a 12-page decree that Tetragon was unable to demonstrate that a request of the tentative order requires “more than review of a contract interpretation, a category that the Chancery Court has generally deemed unworthy of interlocutory appeal.”
Law360 said, citing the document. “Tetragon’s application does not identify any particular aspect of the court’s interpretation that was erroneous, much less a specific error on a substantial issue of material importance, qualifying the decision for state Supreme Court review before the case is decided by summary judgment or trial.”
Also, Zurn reaffirmed the decision made on March 05 by saying that “Tetragon was not reasonably likely to prevail on the merits because neither the Wells Notice nor the enforcement action constituted a Securities Default pursuant to the plain language of the [Ripple] shareholders’ agreement.” Additionally, Zurn determined that XRP’s standing as a security is judged by the district court of the US and not by the filing by the SEC. Judge Zurn also wrote:
“With trial quickly approaching, the costs and inefficiencies associated with disrupting this case’s timeline, particularly when an appeal on a final judgment would be more appropriate for this contractual interpretation dispute, outweigh the potential benefits Tetragon asserts.”
Additionally, Law360 also revealed that Ripple has taken initiative for summary judgment and also termination of the case after the rejection of the prefatory order, “with trial still scheduled for March 25 and 26. The summary judgment motion remained under seal as of Friday.”