Mentioned in this article
- Rick Fox has filed suit against Echo Fox partners Amit Raizada and Stratton Sclavos, alleging fraud and misuse of company funds.
- ESPN reports that Fox will be removed from the company on Oct. 21 after more than 80% of his limited partners accused him of acting against the company’s interests.
- Riot Games auctioned off Echo Fox’s League of Legends Championship Series (LCS) franchise slot to Evil Geniuses following reports of racist and threatening remarks by Raizada.
Echo Fox co-founder and general partner Rick Fox has filed suit against his business partners in the organization, alleging fraud and misuse of company funds.
The suit was filed Monday in Los Angeles County, and names partners Amit Raizada and Stratton Sclavos as defendants. According to the Associated Press, Fox—the three-time NBA champion—is seeking damages of tens of millions of dollars from his business partners. He alleges that Raizada misused company funds for personal use, and that Sclavos took a $2M USD personal loan from the organization.
Last week, ESPN reported that Fox would be removed from the company on Oct. 21 after more than 80% of Fox’s limited partners in Echo Fox accused him of negligence and acting against the company’s best interests. They claim that Fox’s actions led to the forced sale of Echo Fox’s League of Legends Championship Series (LCS) franchise spot.
Riot Games auctioned off the spot on Echo Fox’s behalf after demanding that the team remove Raizada, following an investigation into racist remarks used by the investor. Echo Fox was unable to remove Raizada by Riot’s deadline, which was extended, but lined up a deal to sell the franchise to Kroenke Sports & Entertainment (KSE). However, that deal fell through after Sentinels CEO Ron Moore sued KSE for violating a verbal agreement with him by seeking the LCS deal without his involvement.
Ultimately, Evil Geniuses purchased the LCS franchise spot from Riot Games for a reported $33M, according to ESPN, of which $30.5M will go to Echo Fox. The rest will go to Riot Games to settle Echo Fox’s remaining debt to the company.
“When you are in business with Amit Raizada, a man who has repeatedly been accused of dishonest and fraudulent behavior and who has a long track record of business disputes ending in litigation, then this is unfortunately what you should expect,” said Fox in a statement to ESPN. “I founded Echo Fox with great hopes that were dashed by racism, deception, and greed. On behalf of the Echo Fox General Partnership, I wish to congratulate Evil Geniuses on acquiring the LCS spot, and look forward to moving forward with high hopes for the future.”
Meanwhile, Raizada’s attorney David Swift said in a statement, “Rick Fox’s lawsuit is a transparent attempt to divert attention from the train wreck he left behind at Echo Fox.” Fox told the Associated Press that he intends to “continue on in esports after this is cleaned up.”
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