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Co-founder Rick Fox files multi-million dollar lawsuit against Echo Fox partners

Co-founder Rick Fox files multi-million dollar lawsuit against Echo Fox partners

October 3, 2019 | By Alissa McAloon

Echo Fox co-founder Rick Fox has filed a lawsuit against business partners Amit Raizada and Stratton Sclavos, accusing the two of various acts of fraud relating to the esports organization including allegations that the duo misappropriated funds investors had poured into Echo Fox.

"I am calling on regulators and law enforcement to immediately look into Amit Raizada and his illegal, deceptive business practices. I want to make sure I'm the last victim," said Fox in a press release.

It’s the latest development in a long string of public issues faced by the prominent esports organization, and one that falls shortly after Echo Fox partners moved to remove Fox as general partner, according to the Associated Press.

The lawsuit accuses Raizada of misleading Fox and manipulating business funds to put he and Sclavos in a favorable position, and ultimately is seeking damages in the tens of millions.

Earlier in the year, League of Legends developer Riot Games pressured Echo Fox to sell its franchise spot in the League of Legends Championship Series after racist messages reportedly sent to former Echo Fox CEO Jace Hall by Raizada emerged, along with threats against Fox’s family and other verbally abusive exchanges. The organization eventually sold its spot to the esports organization Evil Geniuses for $33 million.

In a statement to the Associated Press, Raizada said many of the allegations were “categorically false” and that Fox's lawsuit “is a transparent attempt to divert attention from the train wreck he left behind at Echo Fox.”

Update: A separate defamation lawsuit brought by Raizada against the Echo Fox organization has ended in settlement as of March 2020, and deemed statements in the lawsuit above made by co-founder Rick Fox false. As part of that settlement, Echo Fox stated that Fox had made defamatory and false statements about Raizada such as the allegation that Raizada used a racial slur in emails sent to former Echo Fox CEO Jace Hall.

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