• A Delaware court dismissed BitGo’s lawsuit against Galaxy Digital on June 12 for prematurely backing out of its offer to acquire the former for $1.2 billion.
• BitGo had argued that the agreement was terminated before it was intended to end and is owed damages under the termination fee clause.
• However, the court determined that Galaxy was justified in backing out of the deal because BitGo had failed to deliver audited financial statements in time as part of the due diligence process.
Galaxy Digital Wins Dismissal of BitGo Lawsuit
A Delaware court dismissed BitGo’s lawsuit against Galaxy Digital on June 12, ruling that Galaxy was justified in backing out of its offer to acquire BitGo for $1.2 billion due to a lack of timely delivery of audited financial statements.
BitGo Argued Agreement Terminated Early
BitGo had argued that their agreement with Galaxy Digital should not have been terminated early and they were owed damages under a termination fee clause.
Court Determined Lack Of Delivery Justified Termination
The court found however, that Galaxy Digital’s decision to back out was justified due to lack of timely delivery from BitGo as part of their due diligence process.
Galaxy Plans Non-US Market Expansion Amid ‘Legislative Stalemate’
Due to regulatory issues in the US, many crypto-focused companies are looking elsewhere for operations outside America. This news means that Galaxy digital can now focus fully on expanding into non-US markets.
No Damages Owed Under Termination Fee Clause
Given these findings, the court decided there were no grounds for damages being awarded under the termination fee clause outlined in their agreement.