Ripple and R3 have settled a multimillion-dollar dispute

Ripple and R3 have reached a settlement on all outstanding litigation related to the transfer of tokens, which were valued at $19 billion at the time of the dispute. In a brief statement released Monday, Ripple announced the settlement without disclosing details.

The legal battle, which arose from allegations of violation of the terms of the partnership agreement, lasted almost a year and was finally settled by mutual consent.

Blockchain startup R3 was the first to sue Ripple in September 2017, alleging that Ripple violated the terms of the agreement under which R3 had the right to purchase five billion XRP tokens at a price of $0.0085 until the end 2019.

XRP is currently trading at $0.26, which is almost 3,000% of R3's claim price. Consequently, the New York firm could buy the entire tranche - worth more than $1.3 billion to date - for just $42.5 million. In early January, the price of XRP peaked at $3.84, raising the value of the tokens to $19 billion.

R3 claims that Ripple refused to comply with the terms of the agreement, so R3 went to court to enforce the terms of the agreement. However, the counterclaim filed by Ripple alleges that R3 extinguished its right to exercise the option to buy XRP by failing to fulfill its obligations under the agreement.

It is certainly a great thing that Ripple and R3 have come to some kind of understanding. Entering the market and selling off five billion XRP if R3 had won the dispute would have sent the price of the token to a critical minimum.

It is noteworthy that the resolution of this dispute does not stop other lawsuits initiated against the company. There are several other class action lawsuits filed by investors alleging that Ripple's token sale constitutes an offering of unregistered securities.

According to ccn.com