Delaware’s Supreme Court docket has reversed a ruling from a decrease courtroom that dismissed a $100 million lawsuit introduced by BitGo towards Galaxy Digital following a failed acquisition.
In a Might 22 submitting, the Supreme Court docket of the State of Delaware said language within the BitGo-Galaxy Digital $1.2 billion merger settlement — which the latter terminated in August 2022 — was “ambiguous.” The state supreme courtroom concluded that it could reverse the Delaware Chancery Court docket’s choice “for the consideration of such extrinsic proof as could also be applicable to resolve this ambiguity.”
The profitable enchantment, first submitted on Feb. 7, would seemingly enable BitGo one other chunk on the apple to file swimsuit towards Galaxy Digital. In an August 2022 lawsuit, the agency alleged Galaxy dedicated an “intentional breach” of the acquisition settlement. Galaxy claimed on the time that it was inside its rights to drop the deal after BitGo did not ship audited monetary statements from 2021.
“We consider justice prevailed on enchantment and we’re delighted to maneuver ahead with this case within the Chancery Court docket,” R. Brian Timmons, a companion at regulation agency Quinn Emanuel, which is representing BitGo, advised Cointelegraph on the information of the courtroom choice.
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The Delaware Court docket of Chancery dismissed BitGo’s case with prejudice in June 2023. Vice Chancellor J. Travis Laster stated Galaxy had a “clear termination proper” to the BitGo acquisition on the time. A Galaxy spokesperson advised Cointelegraph in response to the Might 22 choice that the agency would “proceed to vigorously defend ourselves” and was “assured within the deserves of our case.”
Operated by Mike Novogratz, Galaxy introduced its intention to accumulate BitGo in Might 2021 as a part of its public providing in the US. In November 2022, amid the collapse of cryptocurrency trade FTX, Galaxy disclosed roughly $77 million in publicity to the agency earlier than FTX filed for chapter.
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Replace (Might 24 at 10:12 pm UTC): This text has been up to date to incorporate an announcement from Galaxy Digital.
