The Xapo CEO Starts Legal Proceedings against Online Firm LifeLock

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The Xapo CEO Starts Legal Proceedings against Online Firm LifeLock

The development which should not surprise many, Wences Casares, the CEO of Bitcoin company Xapo, has begun legal proceedings against online identity firm LifeLock. The legal proceeding according to the company is in response to a suit filed by LifeLock which alleged contract violations against the CEO and several employees.

The detailed cross-complaint filed by Casares at California’s Superior Court on 24th July states that LifeLock’s highly dysfunctional management proved itself to be adept at corporate infighting and bureaucracy. The blame has been put back on LifeLock for the suit it had filed earlier and waiting for responses.

In the cross-complaint it has become clear that Xapo blames that infighting and dysfunctional management at LifeLock was unwilling to support the innovative Lemon team that it had acquired, or to permit that team to be led by Casares without interference. Thus, the document has tried to absolve Xapo from any kind of liability whatsoever regarding the breach of contract.

According to the cross-complaint from Xapo, LifeLock’s dysfunctional management and its willful and intentional post-acquisition breaches of its agreements with Casares and his team squandered the success of its acquired company, and then sought to blame everyone but themselves for their mistakes.

It must be noted that the entire issue revolves around the acquisition of digital wallet company Lemon Inc, founded by Casares, for $42.6m in December 2013. Looks like the things did not go well for LifeLock as in August 2014; it filed a complaint against Casares and several Xapo employees for breach of contract. Those days all employees of Xapo were Lemon employee.

The original complaint from LifeLock alleges that Xapo’s software and all related intellectual property was developed by Lemon employees, in Lemon’s facilities, using its computers and its resources. In the cross-complaint Casares claims that he fully and timely and adequately performed all terms and conditions of the Option Assumption Agreement and RSA.

Relief Sought from the Courts by Casares

Casares also alleges that LifeLock breached the Stock Agreements by failing to acknowledge and implement the accelerated vesting of the unvested stock options associated with him. The cross-complaint claims that due to this breach of contract Casares suffered and continues to suffer the amount yet not ascertained.

In the cross-complaint Casares has asked for monetary award to be entered as damages against Lemon and LifeLock in an amount to be determined at trial. He also seeks an award of punitive damages to be entered against Lemon and LifeLock in an amount to be determined at trial and a declaration of Casares’ rights under the Stock Agreements.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com