Xapo at Center of Lawsuit.

Fortune magazine revealed today details of a lawsuit brought by LifeLock against five Xapo employees, including founder Wences Casares. Lifelock is an online data security company that paid $42.6m to acquire Lemon, a digital wallet company led by Wences Casares in 2013.

The complaint alleges that Xapo was launched “using a product developed by Lemon employees, in Lemon facilities, on Lemon’s computers, and on Lemon’s dime.” .

The named defendants in the complaint are Xapo founder Wences Casares and four other previous Lemon employees who now work at Xapo. Xapo is not currently named but Lifelock is asking the court to force Casares to reveal “the value of the Xapo product attributable to Defendants’ misrepresentations, omissions, breaches of duty, and other wrongful conduct.”

The claim focuses on how much work these employees did for Xapo while still employed by Lemon, it is believed that if these first claims are accepted into court then there may be follow on claims naming Xapo directly as the defendant.

The claim, which has been lodged in the Santa Clara Superior Court was made in October 2014. None of the defendants have yet filed a formal response but Casares and McAdam have filed a motion to dismiss.

 

 

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.