The legal drama that has engulfed esports organization Echo Fox for much of the past year has come to an end, as Newsweek reports that all lawsuits in the matter have been settled out of court. The terms of the settlement are confidential, but will see co-founder and frontman Rick Fox part ways with the company.
Echo Fox's trouble began in April when it was reported that Rick Fox was leaving the company over an investor's use of a racial slur to describe former CEO Jack Hall. Fox later decided to stay if the investor in question, Amit Raizada, left the company instead. He refused, however, even after League of Legends studio Riot Games warned that Echo Fox would lose its LCS slot if Raizada wasn't removed.
That's ultimately what happened, which appeared to escalate the internal conflict at Echo Fox even further. Echo Fox owners including Raizada and Stratton Sclavos, a partner at investment firm Vision Venture Partners, accused Fox of mismanaging the company for his own benefit and attempted to remove him from his position; Fox filed his own lawsuit against them, alleging multiple instances of fraudulent behavior.
Both sides have now agreed to dismiss their suits, according to the report, and an agreement made earlier this month to give the court control of the funds raised by the sale of the LCS slot pending a resolution of the case has been nullified. Instead, the funds raised by the sale will be handled by a new, not-yet-designated general partner. Fox is reportedly planning to rejoin with Hall, now the CEO of gaming organization Twin Galaxies, to launch a new company called Twin Galaxies International.
Despite the settlement, Fox made it clear that he is not interested in walking back his criticism of his former co-owners. "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," he said in a statement.
"On the court and in the business world, teammates are everything and there must be unity and a shared sense of purpose in order to succeed. In the case of Echo Fox, the significant difference of values, ethics and commitment to integrity was very problematic and damaging. I have shared my thoughts on this in my past statements and court filings, and sincerely hope that my experience can help provide further insight for people who should of course make their own judgements and determinations. I have learned some very painful lessons, and am relieved to now be moving on towards more positive business experiences."
I've reached out to Echo Fox for more information and will update if I receive a reply.