Echo Fox founder Rick Fox and company shareholder Vision Esports — represented by the likes of San Jose Sharks owner Stratton Sclavos and controversial figure Amit Raizada — have settled to drop the lawsuits against each other, ESPN reports. The deal also includes waving of Rick Fox’s non-compete in addition to his departure from the company.
“I have chosen to leave Echo Fox, the esports company that I founded, as a method to end the turbulent fighting and instead just continue to advance my visionary interest in being involved in a number of forward-thinking opportunities in the video game space with other strong, credible partners that share my values,” Fox said.
This is an end to a long and draining fight between the involved parties. What started with a leaked email in which Amit Raizada used racist language towards Twin Galaxies’ Jace Hall, developed into a dispute with all sides accusing the other in business malpractice. In August and September, two individual reports stated that Echo Fox shareholders will be asking for Rick Fox’s resignation for his mishandling of the Echo Fox LCS slot sale — something the org had to do after Raizada’s correspondence was made public. In August, Sclavos also filed a lawsuit against Fox citing the former NBA star has been “intentionally destructive” towards the company.
In response, Fox filed his own lawsuit against Echo Fox’s partners for fraud, seeking tens of millions of damages. Fox claimed that Amit Raizada “used investor funds for personal use in a complex scheme that has left the company on the brink of ruin” and that Sclavos has taken a “$2 million personal loan from the company after helping raise funds from a group of investors”. Sclavos’ and Raizada’s attorneys spoke out against the lawsuit calling it “a senseless diatribe” and “transparent attempt to divert attention from the train wreck he [Rick Fox] left behind at Echo Fox”.
As Fox departs the organization he founded without a non-compete to bar him from esports, he now plans to start his own company, Twin Galaxies International, together with Jace Hall. Unfortunately for Fox, he’ll likely see no part of the $30.5 millionEvil Geniuses paid Echo Fox to acquire their LCS slot. According to ESPN, the money will be distributed by Echo Fox’s new general partner. With Rick Fox already out of Echo Fox since Monday, he’s unlikely to be given a share of that.