Cover-Credits:
After a protracted legal battle spanning over two years, a jury has reportedly delivered a verdict in favor of Evil Geniuses (EG) over its former player Sumail "SumaiL" Hassan, on all counts. As first reported by Richard Lewis, SumaiL filed a complaint alleging that EG breached their contract by converting his preferred units of stock into common stock without his full understanding. Following days of evidence presentation and arguments, the jury concluded that neither Evil Geniuses nor Peak6 had a case to answer.
SumaiL Faces Major Loss In a Case Against Evil Geniuses
The dispute centered on stock shares awarded to SumaiL during his tenure with EG. In September 2016, EG, eager to retain SumaiL's services, granted him 400,000 shares in the organization. However, when EG was acquired by Peak6 Strategic Capital in 2019, SumaiL's stock was converted into common stock and restricted common stock without his consent.
According to Lewis, the lawsuit claimed that SumaiL's stock conversion occurred without proper explanation from Peak6 members, and they alleged that SumaiL was not aware of the implications of this change. Furthermore, the suit argued that subsequent contractual amendments imposed unfair financial terms on SumaiL, including a significant reduction in his salary and restrictions on representing other teams.
Evil Geniuses denied all allegations, contending that SumaiL was provided with clear terms at each stage of contract negotiation and was encouraged to seek legal advice. EG argued that its actions were not malicious, citing the generous financial terms of $20,000 monthly salary and a number of bonus payments offered to SumaiL. However, after a 5th-6th performance at The International 2019, SumaiL was offered an amendment to his contract, which he signed so that he could play for other teams.
This amendment changed his contract and made it so that SumaiL could play for other teams but his monthly salary was reduced to $2,000 and he was also restricted from playing at tournaments except the upcoming Dota major qualifiers with his new team. Due to these complications, SumaiL was offered a mutual release clause in 2019 that would free SumaiL from any contractual obligations.
SumaiL’s team alleged that the amendment, “contained numerous irregularities, discrepancies, and inconsistencies, as well as a number of ambiguous and/or unenforceable terms and conditions.” SumaiL’s team also claimed that EG resorted to imposing “harsh, unwarranted and draconian obligations and forfeitures,” in order to get SumaiL to forfeit his stocks.
According to Lewis, “The suit claimed Evil Geniuses did not provide “complete and accurate information” for Hassan in this purchase agreement. They conclude that Hassan “also never received any value whatsoever for his shares and/or units, despite his long-term commitment and dedication to EG and its esports operations. Put simply, Defendants took advantage of a young, naïve and vulnerable Plaintiff by presenting unconscionable and ambiguous terms in numerous proposed arcane agreements to Plaintiff in multiple attempts to strong-arm Plaintiff out of the well-earned benefits of his labors and talent.” Later in the suit they also alleged that Hassan was “coerced” into signing the termination agreement.”
The trial saw both parties presenting their arguments before a jury, which deliberated on the claims of breach of contract, breach of fiduciary duty, and other allegations. The verdict, delivered on 1st March, ruled in favor of Evil Geniuses and Peak6 on all counts, resulting in no damages awarded to SumaiL.
