The Founder and CEO of Xapo, Wences Casares who has been haunted by the lawsuit filed by LifeLock has decided to retaliate with a lawsuit of his own. Wences and few members of his team at Xapo have been fight a lawsuit filed by LifeLock alleging contract violations.
According to LifeLock’s lawsuit, Wences Casares and few other members of his team developed Xapo using their company’s resources while they were still with Lemon following its acquisition. Lemon Inc. was Wences Casares’ previous start-up which was into bitcoin wallets. The company was acquired by LifeLock for $42.6 million in December 2013.
Wences Casares in the counter-lawsuit claims that LifeLock, after acquiring Lemon Inc. failed to manage the newly acquired company efficiently. The dysfunctional management of LifeLock plagued with infighting and bureaucracy failed to support Lemon’s innovative team in developing new products. Instead, the management hampered the progress of Casares’ team, in turn affecting Lemon. Wences Casares blames LifeLock for not honouring their agreements with him. He also holds LifeLock’s management responsible for the downfall of Lemon, post-acquisition.
The lawsuit filed in California’s Superior Court last week accuses LifeLock for squandering away the success of its acquired company and blaming Casares and his team for their mistakes. Casares is seeking damages and a jury trial. LifeLock, in its lawsuit against Wences Casares filed last year has accused him and his team for developing the intellectual property belonging to Xapo using its time, facilities and resources. LifeLock is seeking appropriate compensation from Casares.
Previously Casares had attempted to get the lawsuit against him thrown out. His request was rejected by the Silicon Valley court. He had claimed that he is in possession of a letter from an executive from LifeLock which proves that the company was not interested in Bitcoin products created by Lemon. The whole incident is turning uglier day by day. So far the lawsuit has been limited to Casares and his associates from Lemon. Xapo as a company hasn’t had any involvement in it so far.