LifeLock, Lemon founder locked in dueling lawsuits over bitcoin startup

According to the lawsuit, in the summer of 2013, before the acquisition, “the Lemon board decided not to incorporate bitcoin wallet functionality into the Lemon Wallet product and ordered that such work cease.

“But that work did not stop,” the lawsuit states. “While all the defendants were supposed to be devoting their attention to Lemon and its business, they were actually launching Xapo, a bitcoin wallet app company, using Lemon’s technology, resources and employees. Defendants actively concealed their involvement in Xapo while employed by Lemon.”

LifeLock alleges the work continued after Lemon was bought, and as a result the Lemon-developed LifeLock app suffered as a result.

Casares’ lawsuit claims after the acquisition, LifeLock “repeatedly and consistently obstructed Casares’s management of the Lemon team and directly obstructed his development of the next generation LifeLock Wallet.

“LifeLock’s highly dysfunctional management proved itself to be adept at corporate infighting and bureaucracy, and ultimately unwilling to support the innovative Lemon team that it had acquired, or to permit that team to be led by Casares without interference,” Casares’ lawsuit claims.

Casares said LifeLock “decimated” Lemon’s entire team, and “Casares was hamstrung and left unable to salvage the wallet product.”

Six weeks after the acquisition, Casares asked LifeLock for a letter recognizing his ownership of the bitcoin vault, which he claimed was to allay his investors’ concerns that LifeLock may claim ownership to the vault.

Casares sent a revised draft that his Argentine executives and two other Lemon employees were also involved in the bitcoin business. He assured LifeLock they were just investors and advisers, and weren’t performing

Originally appeared at: http://www.bizjournals.com/phoenix/blog/techflash/2015/08/lifelock-lemon-founder-locked-in-dueling-lawsuits.html