Tetragon Financial Group, a major Ripple investor, accused Ripple Labs of “word games” in a lawsuit against the blockchain giant.
In particular, Ripple’s lawyers allegedly misrepresented the terms of the 2019 deal for shareholders, based on Tetragon’s request in court that all of Ripple’s financial transactions be suspended until DLT company Tetragon pays back its $ 175 million investment.
Tetragon’s attorney Holwell Shuster & Goldberg LLP’s Michael S. Shuster said Ripple Labs representatives were doing “puns” in court and attempting to inappropriately alter the wording of the shareholders’ agreement.
The deal was signed when Tetragon invested close to $ 180 million at the end of 2019. The agreement in question contained a clause about “If the SEC identifies XRP as a security, Ripple will buy back the shares it sold to Tetragon.”
As it is known, recently the US Security and Exchange Commission filed a lawsuit claiming that it sold unregistered securities to Ripple. Tetragon also claimed after this lawsuit that the clause in the investment contract was provided and that Ripple had to buy back the shares that Tetragon had bought. In line with this, Tetragon filed a legal action against Ripple, demanding investors to stop their crypto sales or fiat payments until they could get the money back from Ripple Labs.
As noted above, Tetragon’s lawyer claims that Ripple’s lawyers are trying to misinterpret the language of the deal to avoid paying a huge amount to the UK-based investment giant. It is a matter of curiosity how the case will end as a result of these allegations.