Cryptocurrency
custodian
BitGo
will
get
a
fresh
chance
to
sue
financial
services
firm
Galaxy
Digital
over
the
two
companies’
failed
$1.2
billion
merger
agreement
after
Delaware’s
Supreme
Court
reversed
an
earlier
ruling
to
dismiss
BitGo’s
lawsuit.
“We
believe
justice
prevailed
on
appeal,
and
we
are
delighted
to
move
forward
with
this
case
in
the
Chancery
Court,”
said
R.
Brian
Timmons,
partner
at
Los
Angeles-based
law
firm
Quinn
Emanuel,
which
is
representing
BitGo
in
this
case.
BitGo
filed
suit
against
Galaxy
in
August
2022,
seeking
$100
million
in
damages
and
alleging
that
Galaxy
“intentionally”
breached
its
May
2021
merger
agreement
when
it
could
no
longer
afford
the
$1.2
billion
price
tag
after
experiencing
massive
financial
losses
during
the
crypto
bear
market.
Galaxy
blamed
the
breakup
on
BitGo’s
failure
to
provide
certain
audited
financial
statements
on
time
and
said
BitGo’s
claims
were
“without
merit.”
Last
June,
Delaware
Chancery
Court
Vice
Chancellor
J.
Travis
Laster
ruled
that
Galaxy
had
a
“valid
basis”
to
pull
out
of
the
agreement,
because
BitGo
gave
the
firm
“non-compliant”
financial
documents.
After
BitGo
appealed
the
ruling,
the
state’s
Supreme
Court
found
that
the
merger
agreement’s
definition
of
“financial
statements”
was
ambiguous,
and
that
both
parties
“have
proffered
reasonable
interpretations”
of
acceptable
documentation,
and
reversed
the
ruling.
“We
will
continue
to
vigorously
defend
ourselves
and
remain confident
in
the
merits
of
our
position
in
the
case,”
a
Galaxy
spokesperson
told
CoinDesk.
UPDATE
(May
25,
2024
at
00:35
UTC):
Updated
to
include
a
statement
from
Galaxy
Digital.