RIOT CRYPTO FIRM IN BREACH OF CONTRACT
During the rally, Honig said Riot Blockchain had promised him damage. According to the results of 2017 March. Agreements concluded by both parties will cover all legal costs incurred on it. Signed documents:
contain robust indemnification provisions which require defendant to defend and indemnify Mr. Honig and GRQ against any subsequent lawsuits.
And a number of lawsuits, it is true, Mr. Honig suffered in connection with the alleged fraud of Riot securities in 2018. In one example, Honig spoke of a recent SEC investigation against Riot that was completed. However, it also faces a proposed group share in New Jersey and at least five separate derivative shareholder shares.
The Riot Investor "strongly denies any claims made against him in this case." However, he "spent significant amounts on his defense."
MORE LEGAL COSTS TO COME ON TOP OF $728K TOTAL
He demanded that Riot (which still refused to fulfill its obligations) cover the legal costs of representation on all claims. He also said that in addition to the $ 728 thousand already spent, he will also incur even higher costs. On Monday, Honig said:
In the contracts between the parties at issue in this action, defendant agreed that the state or federal courts in New York shall have exclusive jurisdiction over any disputes arising out of or in connection with parties’ agreements at issue in this proceeding, and expressly waived any objection to this Court serving as a convenient venue.
He also said that Riot Blockchain has the means to fulfill its obligations. He showed the company's latest quarterly report showing assets of $ 20,322,236.
Honig’s attorney, Robert Weber told Law360:
The language of the agreements are black and white… Riot has an obligation to indemnify Mr. Honing for the defense fees that he incurred in the various lawsuits and hasn’t done it, and frankly, forcing us to file us to go to litigation is ultimately going to be a waste of Riot shareholders’ money.