Rick Fox and his former Echo Fox business partners have settled out of court for the fate of the esports organization, Newsweek has learned. Fox is now free to pursue other business avenues, including in esports.
A stipulation agreement has been filed in the Echo Fox case, with both sides agreeing to dismiss their respective lawsuits. Filed in LA county court Monday night and obtained by Newsweek, the attorneys for Vision Esports (operated by Stratton Sclavos), the general partner Esports LLC and Rick Fox have agreed to a confidential settlement agreement that has both parties filing the settlement and a dismissal request.
The funds for the sale of the LCS slot for Echo Fox’s League of Legends team will be done by a direct sale and decided by a new general partner that has yet to be designated. The original Oct. 4 agreement, which was created to put the funds in the court’s custody unless both parties agree or a court order distributed the funds, has been nullified.
Fox had taken over the over GP role in January of 2019 after purchasing Raizada’s shares of the company for $10 million. Fox plans on leaving the company that he helped build to form a new organization, Twin Galaxies International, with his friend and former Echo Fox president, Jace Hall.
In April 2019, a letter from Rick Fox was published saying the owner was going to leave the company after Raizada had used a racial epithet directed at Hall. Riot Games, the developers of League of Legends, initiated an investigation and decided that Raizada either needed to leave the company or the team’s slot had to be sold by September. The slot was eventually acquired by organization Evil Geniuses for $33 million according to ESPN.
A lawsuit by Vision Esports filed in June claimed that Fox had owed investors $5.1 million, but it was dismissed in early July. Fox had filed his own lawsuit against Raizada and their business partner Stratton Sclavos in October, alleging that the pair had misused Echo Fox’s funds and had gone so far as to tap his phone lines and hire private investigators to trail the former NBA player.
Categorized in: Esports News