Esports Entertainment Group’s Former Boss Sues the Company

The friction between Cary Grant Johnson, the ousted CEO of Esports Entertainment Group (EEG), and the keep company he once led is getting hotter. Following his “voluntary” outlet in December, Lyndon Johnson is now suing EEG for millions.

Johnson claims breach of declaration on the portion of EEG. He submitted the suit in the US District Margaret Court for the Southern District of New York, seeking restitution of upward to $3 million, according to lawcourt documents.

The suit alleges that the company’s expiry of Johnson’s employ contract bridge was based on “contrived reasons” that go to gather the requirements of a “for cause” termination. Lyndon Baines Johnson also asserts that EEG failed to compensate his salary, bonuses and severance pay as in agreement(p) inward the contract.

More Fluff Than Stuff

Johnson’s declaration with EEG suddenly ended on Dec 3, 2022. At the time, the keep company accused him of “fraud, willful misconduct, and/or revenue negligence,” according to his termination letter. The self-described enterpriser and financial services expert argues that EEG used that terminology in an effort to force him to resign.

In Johnson’s view, at that place were tercet main reasons he in the end had to turn of events to a causa to seek restitution. One was the fact that EEG did non ply 60 days’ notice, another was that the allegations of “for cause” were non supported by evidence and the third was that the allegations were false.

As for the latter reason, President Lyndon Johnson claims that the board of directors of EEG already addressed and dismissed the allegations. It nem con in agreement(p) not to conduct an investigating into them inwards Apr of in conclusion year.

Johnson stated in the fit that he has incurred losses, which include a immediate payment fillip of $450,000 per his contract. They also include $1.15 million, the equivalent of 200,000 shares in EEG that his get provided him.

EEG’s plank of directors asked President Andrew Johnson to resign cobbler's last month followers a slacken 2022, for which it blamed the then-CEO. In the 4th quarter, it posted an familiarised EBITDA (earnings before interest, taxes, wear and tear and amortization) deprivation of $6.5 million.

Johnson has also stated that, fifty-fifty if in that location had been indications of fraud, these don’t see the limen for firing per his employment contract. EEG refutes this, as intimately as his other allegations.

This month, the table hired Spectrum Gaming Group’s Alex Igelman, the founding father of eSports consultancy unwaveringly Esports Washington Group, to have over. Igelman is also the co-founder of FairP2P, a “membership-based self-regulatory-organization focussed on the lapse and governance of the monetized competitive peer-to-peer (P2P) skill-based gameplay,” according to the company’s description.

Complete Rewrite of Company Operations

The weak execution led EEG to close up eSports online betting political program Vie.gg. It also had to sell its online gambling casino trading operations inwards Spain, as advantageously as closely Argyll iGaming inward the UK and Ireland.

As of the midriff of January, the society continues to lead equipment casualty contain and pose everything in order. It reportedly had only if $500,000 in cash, but owed $200,000 to customers at the cease of 2022.

The well(p) word is that on that point testament be some money coming inwards soon. The sales event of its gaming assets inwards Spain should resolve this month. If it does, it testament drive home $1 1000000 to the company. There’s an additional $1 1000000 the country’s Directorate General for the Regulation of Gambling holds on deposit.

Wherever possible, EEG will enjoyment additional proceeds to pay off off other debts. It defaulted on a loan cobbler's last October, and it needs to secretive that gap to rest in a higher place water. However, if it isn’t able-bodied to nail the plus sale in Spain, the company’s time to come will live uncertain.