Xapo CEO Wences Casares and some of the members of the Xapo team have been sued for breaching their contract with LifeLock. Casares responded with a cross-complaint against the online identity firm and is seeking damages and a jury trial.
Last year, LifeLock filed a complaint against Casares and several Xapo employees who were members of the Lemon digital wallet company that Casares founded and was acquired by LifeLock.
According to the LifeLock complaint, Casares and his long-time associates for launching a new business called Xapo using the facilities of Lemon. Furthermore, LifeLock alleged that Xapo’s software and all related intellectual property was developed by Lemon employees using its computers and its resources. The digital wallet was acquired by LifeLock in December 2013 for $42.6 million.
In Casares’ cross-complaint during the legal proceedings, he blamed LifeLock’s dysfunctional management for intentional post-acquisition breaches. “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,” it stated.
It went on to say that Casares was asked to stay with the Lemon team during