Ripple's Partner Sued for Cancelling Deal Over COVID-19

[Kemarit]

Ripple's Partner Sued for Cancelling Deal Over COVID-19

SoftBank, Ripple’s partner in the MoneyTap and PayPay-LINE deal, has cancelled its $9.6 bln deal with WeWork due to the coronavirus' effect on customers and now WeWork is suing the financial conglomerate.

Source

What are your thoughts about this one?

SoftBank reasons are:

- the corona virus pandemic has impacted their business their business
- WeWork is under criminal investigation and that's why they have distance themselves.

Do you think that is is a valid reason? Does WeWork has the chance to win or settle this out of court and they proceeded with the lawsuit?

[tabas]

I think I've watched the WeWork issue with Softbank. They've invested huge money on that company or they have bought it, I don't know the entire story but that's for real and it's possible that the money is about to lose.
Forbes recently made a video about that issue.
Is Softbank's $100 Billion Vision Fund In Danger After WeWork Investments? | Forbes

[Baofeng]

What are your thoughts about this one?

SoftBank reasons are:

- the corona virus pandemic has impacted their business their business
- WeWork is under criminal investigation and that's why they have distance themselves.

Do you think that is is a valid reason? Does WeWork has the chance to win or settle this out of court and they proceeded with the lawsuit?

The whole global financial markets has change since the covid-19 outbreak. So I'm guessing that Softbank was really hit hard by it that's why they decided to back up at the last minute because of the circumstances. I'm not sure if this is just verbal or have written agreement to start with. If there is a written agreement then it the game chances. We still have to see the lawsuit first, but I will assume that this will be settled out of court as not to drag this case for months or years that will have an impact on the two companies.

[uray]

Ripple's Partner Sued for Cancelling Deal Over COVID-19
SoftBank reasons are:

- the corona virus pandemic has impacted their business their business
- WeWork is under criminal investigation and that's why they have distance themselves.

Do you think that is is a valid reason? Does WeWork has the chance to win or settle this out of court and they proceeded with the lawsuit?

Every business is affected by this pandemic and they might reach a solution and settle off the court rather than suing them when their business is affected, no idea about the partnership that is discussed here but WeWork is having financial difficulties and they even cancelled an IPO they were planning earlier due to financial issues and with that in mind they need to pay a huge amount of money to the legal team which i think is not a realistic approach with their financial issues well documented.

[Yudhisthir]

When you open a business, lawsuit are a common thing. There are terms and conditions on every deal and if you violate it, you are going to get sued.
But companies generally do violate these rules as the outcome would be more favorable or cheaper than going with the original deal. Softbank ofcourse would have reasons to do so. And a company does so generally with a support of the standing board.

[Kemarit]

What are your thoughts about this one?

SoftBank reasons are:

- the corona virus pandemic has impacted their business their business
- WeWork is under criminal investigation and that's why they have distance themselves.

Do you think that is is a valid reason? Does WeWork has the chance to win or settle this out of court and they proceeded with the lawsuit?

The whole global financial markets has change since the covid-19 outbreak. So I'm guessing that Softbank was really hit hard by it that's why they decided to back up at the last minute because of the circumstances. I'm not sure if this is just verbal or have written agreement to start with. If there is a written agreement then it the game chances. We still have to see the lawsuit first, but I will assume that this will be settled out of court as not to drag this case for months or years that will have an impact on the two companies.

True, that's what I really thought in the beginning, but is this an excuse from backing out of the partnership? Or are there more compelling reasons?

When you open a business, lawsuit are a common thing. There are terms and conditions on every deal and if you violate it, you are going to get sued.
But companies generally do violate these rules as the outcome would be more favorable or cheaper than going with the original deal. Softbank ofcourse would have reasons to do so. And a company does so generally with a support of the standing board.

I disagree though, every business partnership entered have the goal to make profit for the two. And there are also protections in place if ever the partnership is dissolved. However, in this case they even hasn't started anything yet. Yes, it could be settled out of court as I have said, but I think there are more deeper reasons in dissolving the partnership, iMHO.

[YOSHIE]

I have read the source you gave but I can only draw conclusions;

Now, SoftBank has canceled the agreement right in the middle of the spread of COVID-19 throughout the world.

I hope this event will not affect those who are interested in trading and investing with small capital on Ripple, but I believe WeWork and SoftBank are good partners for Ripple from the past.

Indeed the current COVID-19 which has a very big impact on the company and the crypto industry today, whatever happens now we can only hope and pray for the future will be better all of them.

I'm sure they have a positive thing later in the trial for this demand.

[Kemarit]

I have read the source you gave but I can only draw conclusions;

Now, SoftBank has canceled the agreement right in the middle of the spread of COVID-19 throughout the world.

I hope this event will not affect those who are interested in trading and investing with small capital on Ripple, but I believe WeWork and SoftBank are good partners for Ripple from the past.

Indeed the current COVID-19 which has a very big impact on the company and the crypto industry today, whatever happens now we can only hope and pray for the future will be better all of them.

I'm sure they have a positive thing later in the trial for this demand.

Yeah, all we can do right now is hope that their agreement or partnership will still remain even after this case. It is just really sad to see that everyone is affected by this Covid-19, even those who are visionary in crypto-sphere can't do anything about it.

So let's pray that the pandemic will be over so that we can go back to our normal lives and do hope that crypto will remain and that the future will still look bright for everyone.