Echo Fox founder Rick Fox is suing fellow partners Amit Raizada and Scratton Sclavos for fraud amidst an ongoing dispute between the company's ownership.
AP News reports that the suit was filed in Los Angeles county on Monday, with Fox seeking tens of millions of dollars in damages.
In the suit, Fox accuses Raizada of using investor funds for personal use to the point of financially ruining the company. Additionally, it mentions the racist messages that have been at the heart of a continued conflict this past year that nearly saw Fox depart the organization, caused the LCS to step in and ask Echo Fox to part with Raizada over his remarks, and, when that failed, caused the organization to lose its franchise slot and lay off all its players.
Fox also accuses Sclavos of fraud, stemming from his taking a $2m personal loan from the company after raising funds from a wide variety of investors.
The suit comes on the heels of a movement from Raizada and other partners to remove Fox from their ranks on October 21. According to Raizada's attorney, David Swift in a statement to AP, "Rick Fox's lawsuit is a transparent attempt to divert attention from the train wreck he left behind at Echo Fox." He added that the lawsuit is "littered with categorically false allegations."
Sclavos' attorney also denied the accusations, alleging Fox was trying to "deflect blame for Echo Fox's failure."
Fox said, "[Raizada has] threatened my family, he threatened my friends, he's proven to be despicable. Most people are afraid to deal with that. They're afraid to speak up. My hope is that my shining a light on this situation with myself, others will not fall prey to his actions and his deception."