The co-founders of Gala Games, a gaming company using blockchain technology, are embroiled in a legal battle over the ownership and management of the company.
Eric Schiermeyer, the president and manager of Gala Games, and Wright Thurston, the company's manager and major shareholder, filed lawsuits against each other in different courts.
Both Sides Accused Each Other of Harming the Company and Decreasing the Price of GALA Tokens
Schiermeyer accused Thurston of illegally obtaining and selling $130 million worth of GALA tokens, Gala Games' native cryptocurrency.
Additionally, he alleged that Thurston breached his fiduciary duty and violated the company's operating agreement by secretly creating and transferring millions of GALA tokens to himself and his affiliates. He also alleged that Thurston sold some of the tokens on the open market, causing the price to drop and harming the company and its investors.
Schiermeyer filed his lawsuit in the Delaware Court of Chancery, demanding to recover the tokens and damages from Thurston. He also asked the court to remove Thurston as director and appoint a guardian to oversee the company's affairs.
Thurston accused Schiermeyer of wasting millions of dollars in company assets and engaging in fraudulent practices that harmed the company. He alleged that Schiermeyer misused company funds for personal loans, luxury expenses and questionable transactions. He also alleged that Schiermeyer stole commercial opportunities from Gala Games by establishing companies in Switzerland and Dubai. Moreover, he argued that Schiermeyer denied him access to company records and participation in company decisions.
Thurston filed a lawsuit in Utah District Court demanding that Schiermeyer be removed as president and executive and that he be compensated for the damages caused by his actions. He also asked the court to appoint a trustee to take control of the company's operations.
Both parties jointly established Gala Games in 2020 to develop and operate video games on the blockchain. The initial agreement was to split all business opportunities 50/50. However, their relationship soured over time due to disagreements over the company's direction and management.
*This is not investment advice.
What’s the main position of GALA and I hope that it will not be delisted in binance exchange?
And I urge the to fix the issue as soon as possible so that GALA will go back to its previous price if not all the investor is going to loose their money 😭