High-stakes litigation may result from the dispute that tore apart Echo Fox and put Rick Fox — one of esports’ most visible ambassadors — at the center of a storm.
Los Angeles County Superior Court Judge James Chalfant ruled Sept. 3 that any proceeds from Riot Games Inc.’s sale of the “League of Legends” slot be “deposited into an escrow mutually agreed upon” by Fox and a coterie of Echo Fox investors who sued the former Los Angeles Lakers player.
Chalfant did not grant the temporary restraining order against Fox that investors sought.
The judge ruled that the investors may proceed with action to strip Fox of his proceed share, however, if the parties cannot agree on an escrow.
Chris Greeley, commissioner of the North American “League of Legends” tournament, booted Beverly Hills-based Echo Fox out of the “League of Legends” league in August following racist remarks by Echo Fox shareholder Amit Raizada.
Greeley stipulated that the company could collect an undisclosed majority of the proceeds from the sale of its tournament slot, a deal expected to net between $30 million and $50 million, according to esports analysts.