Echo Fox founder Rick Fox has filed a civil complaint against the esports organization’s business partners. He has alleged that the organization’s investors have committed acts of fraud. Fox is seeking damages of over $10 million USD in his lawsuit against Amit Raizada and Stratton Sclavos in Los Angeles County court.
Rick Fox lawsuit
In the civil complaint, Rick Fox accuses Amit Raizada of misusing investor funds for his own personal benefit. He brings up the man’s racist comments as well as deceptive business practices in the 162-page complaint. It further discusses how Raizada used investor money to lease a Beverly Hills home that cost more than $20,000 a month, along with other expenses and a salary amount that wasn’t approved.
Amit Raizada’s attorney, David Swift, responded to this. “Rick Fox’s lawsuit is a transparent attempt to divert attention from the train wreck he left behind at Echo Fox.” Swift also describes this as a way for Rick Fox to draw attention away from the fact that Echo Fox has collapsed in recent months. This lawsuit comes almost a week after the Echo Fox organization voted to expel Rick Fox, with 80 percent of the organization’s partners agreeing that Rick Fox did not act in the best interest of the business.
The lawsuit also targets Stratton Sclavos, a name that hasn’t been brought up much in the conflict thus far. The former San Jose Sharks co-owner and VeriSign Chief Executive Officer is an Echo Fox partner who reportedly took a $2 million personal loan from the company after helping raise funds. However, there is no proof that Sclavos actually misused any of the funds either.
“Contrary to Fox’s propaganda, Sclavos nor Raizada misappropriated or misused any company funds. No monies paid to or for Raizada for his services were paid by Echo Fox or depleted any Echo Fox resources,” said Linda McFee, the attorney for Stratton Sclavos. “Rather Sclavos, Raizada, and their affiliates infused millions of dollars into Echo Fox over several years just so it could survive. Fox cannot say the same.”
Echo Fox vote
This whole ordeal started when Rick Fox came out into the public and accused Amit Raizada of using racial slurs toward Echo Fox Chief Executive Office Jace Hall. Raizada would later confirm these accusations, but they still impacted the esports organization’s core business. Echo Fox’s League of Legends Championship Series slot was forcefully taken by Riot Games after Echo Fox failed to resolve the issue.
During this conflict, new information came to light about the actions between Rick Fox and the organization’s investors. The investors originally wanted to accept an offer for the LCS slot, which offered supposed greater financial gains. However, Rick Fox rejected this stance and wanted to sell to another party.
Rick Fox still remains in control of the esports organization until Oct 21, when the shareholder majority vote will take effect. Despite this going on, Rick Fox has stated that he plans on remaining a part of the esports industry afterward. Will the organization still operate as normal after this ordeal ends? What will happen to the fighting game esports players still with Echo Fox? Let us know what you think, and keep up with Daily Esports for all of your League of Legends coverage.
Follower of tech startups and finance. I write about esports in my free time.
Credit: Source link