A heated legal dispute arose between Eric Schiermeyer, CEO of Gala Games, and Wright Thurston, co-founder and director of the company. A Utah district court has been flooded with lawsuits alleging everything from corporate mismanagement to token theft.
Schiermeyer claims in his lawsuit that in 2021, Thurston allegedly stole $130 million worth of GALA tokens. Supposedly, Thurston stole these tokens through his company, True North United Investments, despite being crucial to the functioning of the Gala Games ecosystem.
The complaint alleges that Thurston told Gala Games that he was safely storing the tokens for the firm’s benefit, but then secretly transferred and sold a large number of them, depriving the company of the proceeds
Legal conflicts have been aggravated by allegations that Thurston stole licenses necessary for running nodes within the Gala Games ecosystem. This licenses he also sold these and kept the proceeds for himself alone.
Thurston has filed a countersuit against Schiermeyer, bringing his claims against him. According to Thurston, Schiermeyer caused substantial financial damage to the company without the board’s or shareholders’ knowledge or agreement.
Gala Games claims that Schiermeyer misappropriated millions of dollars by selling corporate assets, taking out personal loans with company money, and setting up foreign companies to explore opportunities that should belong to Gala Games.
According to Thurston’s lawsuit, Schiermeyer has been unable to fulfil his duties as director and manager of True North United Investments because he has been operating Gala Games without necessary financial controls and by neglecting to maintain proper corporate records.
After charging Schiermeyer misappropriated at least $600 million, Thurston is seeking $750 million in damages, while Eric is seeking recovery of the $130 million in GALA tokens he claims were taken, plus interest and legal fees.This legal tussle is believed to be the reason for the 18% drop in the price of gala tokens in the past 7 days according to CoinMarketCap.
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