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Justia Daily Opinion Summaries

Delaware Court of Chancery
March 23, 2021

Table of Contents

Tetragon Financial Group Limited v. Ripple Labs Inc.

Business Law

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Delaware Court of Chancery Opinions

Tetragon Financial Group Limited v. Ripple Labs Inc.

Docket: C.A. No. 2021-0007-MTZ

Opinion Date: March 19, 2021

Judge: Morgan T. Zurn

Areas of Law: Business Law

In this expedited contractual dispute, the Court of Chancery granted summary judgment in favor of defendant Ripple Labs, Inc., holding that Ripple was entitled to summary judgment. Ripple, an enterprise blockchain company, executed a stockholders' agreement with Tetragon Financial Group, Ltd., an investment company that held a majority of Ripple's Series C preferred stock, memorializing Tetragon's investment and status as "Lead Purchaser." Pursuant to the agreement Tetragon had a reception right that was triggered upon a "Securities Default," upon which Tetragon may demand redemption of its shares via a "Redemption Request." At issue was whether certain actions by the SEC constituted a "Securities Default" under the agreement. The Court of Chancery granted summary judgment for Ripple, holding that certain SEC processes satisfied the definition of "Securities Default."

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