Echo Fox partners were denied by a Los Angeles court today in their pursuit to obtain a temporary restraining order against Rick Fox, according to a new report from The Washington Post.
The restraining order was filed earlier today by venture investor Stratton Sclavos, former part-owner of the NHL’s San Jose Sharks. In the filing, Sclavos said Fox went against the wishes of his partners in the sale of Echo Fox’s LCS slot in July.
Furthermore, The Washington Post obtained a letter sent to Fox last night from eight of his partners accusing him of “willful, wanton, and intentionally destructive efforts towards the Partnership.” The partners point to Fox as the reason why the esports organization’s valuation fell from $150 million in October to $31 million this month.
In a phone interview with the Post, Fox denied many of his partners’ allegations, claiming Echo Fox was never worth $150 million.
The filing comes months after Fox’s dispute with Echo Fox investor Amit Raizada, who was accused of sending malicious emails to both Fox and the organization’s CEO Jace Hall.
Riot Games investigated claims of racism and directed Echo Fox to “take appropriate corrective action” to remove the investor from the company. The League of Legends developer later helped the organization sell its LCS slot when it became clear Echo Fox was unable to remove Raizada in the provided time frame.
The slot was originally sold to Kroenke Sports and Entertainment, owner of the Los Angeles Gladiators in the Overwatch League, for a reported $30.25 million. The sale fell through, however, after Sentinels CEO Robert Moore filed a lawsuit against Kroenke on Aug. 1, claiming Kroenke violated a verbal joint venture agreement in the company’s purchase of the slot.
Riot has since opened a 30-day application process to determine which organization will take over the vacant LCS slot.