ALL THE LATEST NEWS ABOUT THE BUSINESS OF PC GAMES

News

Echo Fox co-founder files multi-million dollar lawsuit against company partners

Echo Fox co-founder files multi-million dollar lawsuit against company partners

Rick Fox has sued his soon-to-be former business partners at Echo Fox.

According to the Associated Press, Echo Fox partners Amit Raizada and Stratton Sclavos have both been accused of using investor funds for personal use with the latter allegedly taking a $2 million personal loan from the firm. Fox is seeking millions of dollars in damages.

Raizada was also accused of racist behaviour, costing the company its League of Legends franchise slot. Riot Games sold the now vacant slot to the Evil Geniuses for $33 million, returning $30.5 million to Echo Fox.

In a decision made by several partners, Fox is to be removed as general partner on October 21st. Fox co-founded the esports organisation in 2015.

The exec claims Raizada has made threats towards himself and his family.

“He’s threatened my family, he threatened my friends, he’s proven to be despicable,” Fox said.

“Most people are afraid to deal with that. They’re afraid to speak up. My hope is that my shining a light on this situation with myself, others will not fall prey to his actions and his deception.”

However, attorneys representing Raizada and Sclavos claim Fox neglected his duties to the firm and that neither man used company funding for their own needs.

“Rick Fox’s lawsuit is a transparent attempt to divert attention from the train wreck he left behind at Echo Fox,” said Raizada’s attorney David Swift.

Linda McFee, Sclavos’ attorney added: “Rick Fox’s lawsuit is a senseless diatribe replete with false and wholly unsupported accusations about Stratton Sclavos and Amit Raizada.

“Unfortunately, in the face of his impending removal as General Partner of Echo Fox for flagrant breaches of his duties to the company and its partners, this appears to be yet another attempt to deflect blame for Echo Fox’s failure from himself. Contrary to Fox’s propaganda, neither 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. 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.”


Staff Writer

A freelance writer based in Berkshire. Besides PG and PCGI she has written as a guides writer, specialising in RPG's and horror.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies