BitGo, digital asset trust and security firm, is suing Galaxy Digital for pulling out of a previously announced acquisition deal. The legal complaint is the firm’s response to Galaxy Digital’s recent decision to terminate the merger.
BitGo is seeking over $100M in damages
BitGo’s official Twitter handle disclosed the move Tuesday. According to the tweet, the firm filed the lawsuit on Monday, following Galaxy Digital’s announcement. The company is, through the lawsuit, demanding over $100M compensation for damages.
Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.
— BitGo (@BitGo) September 13, 2022
BitGo noted that Galaxy Digital’s decision does not come without adverse effects on the firm. It added that the termination of the acquisition deal is an “improper repudiation and intentional breach of its merger agreement with BitGo.”
The firm filed the suit in the Delaware Court of Chancery. Galaxy Digital, however, believes that the complaint contains some information that should otherwise remain confidential. Consequently, Galaxy has indicated an interest in editing the content and allegations before bringing it to the public.
Galaxy Digital terminated the $1.2B acquisition deal last month
Under the court’s rules, even if some information is redacted, the complaint should be accessible by the public shortly after 5 pm ET on Thursday,
said Brian Timmons, Global Head of Complex Litigation at Quinn Emanuel, the law firm representing BitGo.
Recall that Mike Novogratz’s Galaxy Digital terminated its $1.2B acquisition deal of BitGo last month. As revealed in a press release, the firm noted that there was a breach of contract. Galaxy revealed that the BitGo failed to produce its audited 2021 financial records by July 31.
Galaxy Digital had announced plans to acquire the firm in May of 2021. The acquisition deal would assist Galaxy in its plans to go public. Part of the terms of the acquisition gave current shareholders of BitGo a 10% stake on the new firm. Additionally, Galaxy Digital planned to retain most of BitGo’s existing team.
Notwithstanding, the merger faced several delays. Previously expected to occur by year-end, Galaxy later terminated the deal. Despite the termination, Galaxy noted that it was still planning to go public in the United States.