Ex-Esports Entertainment Group CEO sues company for alleged contract breach
Ex-Esports Entertainment Group CEO Grant Johnson is suing his former employer over an alleged breach of contract.
Johnson was ousted by the operator’s board of directors on 3 December 2022 following a shambolic year of poor performance and mounting financial issues.
In the suit, the executive claimed his employment was terminated for “contrived” reasons and that EEG has failed to pay him contractually agreed wages, bonuses and severance.
Johnson’s case centres on the fact his contract allegedly specified he could only be let go for reasons including “fraud, wilful misconduct or gross negligence”.
He is now seeking compensation of more than $1m, including a cash bonus of $450,000 and 200,00 shares of common stock in Nasdaq-listed Esports Entertainment Group.
EEG: “The company believes the claims are without merit and intends to defend against the claims vigorously.”
The operator said it would defend itself vigorously and that Johnson’s claims are without merit.
Back in December, Ontario resident Johnson said he was deeply disappointed after being instructed to leave the company he oversaw for nearly nine years.
Earlier this month, gambling industry lawyer and consultant Alex Igelman was confirmed as his successor.
Igelman, who has been tasked with bringing the company back from the brink, received 2.5 million shares of common stock on joining the business.