Recently ousted Esports Entertainment Group (EEG) CEO Grant Johnson is suing EEG for breach of contract and wrongful termination.
Johnson was asked to resign from EEG in December after a calamitous year that saw a debt default and brand closures. According to a report in iGaming Business, Johnson’s suit, filed in the Southern District of New York court, claims EEG had breached his employment contract in its listed reasoning for his dismissal. EEG had terminated the former CEO’s contract “for cause” citing accusations of fraud, willful misconduct and gross negligence.
Having removed Johnson for cause, EEG did not grant Johnson any severance or restitution for the remainder of his contract, which ran until 2025.
The lawsuit is seeking more than $1 million in compensation and 200,000 shares of EEG stock.
EEG released a statement pledging to fight the lawsuit. “The company believes the claims are without merit and intends to defend against the claims vigorously,” the statement said.