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Legal Battle: True North United Investments Sues Gala Games CEO over Mismanagement and Improper Use of Funds

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Legal Battle Engulfs Gala Games

A lawsuit has been filed against Gala Games, the play-for-profit gaming platform, by True North United Investments. The lawsuit accuses Gala Games CEO Eric Schermeyer of mismanaging the company, misusing funds, and engaging in questionable business practices.

Background

Gala Games was co-founded by Schermeyer and Wright Thurston, the founder of True North United Investments. This is not the first legal dispute between the two businessmen. In a previous lawsuit, Schermeyer accused Thurston of stealing $130 million worth of cryptocurrency. In response, Thurston filed a lawsuit against Schermeyer, alleging breaches of fiduciary duties and self-dealing.

Allegations

Thurston’s lawsuit also claims that Schermeyer borrowed millions of dollars from Gala Games for personal use and misappropriated $600 million of company assets. It is alleged that Schermeyer set up Gala Games entities in Switzerland and Dubai to seize business opportunities. Additionally, Thurston accuses Schermeyer of preventing him from participating in company decisions and providing incomplete or inaccurate financial information.

Legal Consequences

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True North is seeking Schermeyer’s removal from his positions as director and president of Gala Games. They are also seeking damages for the alleged harm caused by his actions. The US Securities and Exchange Commission has also sued Thurston in a separate fraud case involving green boxes, devices that claim to mine energy-efficient cryptocurrency tokens.

Gala Games: A Play-for-Profit Gaming Platform

Gala Games is a blockchain gaming platform that offers play-for-profit (P2E) game titles, an NFT marketplace, and music and movie products. Built on Ethereum and Binance smart chain, Gala Games operates on a decentralized system of user-owned nodes. Players can monetize their gaming activities, own NFTs, and actively participate in platform development and management.

The Rise of Play-for-Profit Games

The play-for-profit gaming market is growing rapidly, with NFT-based P2E games becoming popular in the Web3 metaverse. Games like Axie Infinity, Splinterlands, Lost Relics, and The Sandbox have attracted gamers and investors. Facebook’s transition to Meta Platforms and Microsoft’s acquisition of Activision Blizzard are expected to have a significant impact on the P2E gaming industry.

GALA Token Performance

The value of Gala Games’ native GALA token has dropped by 98% since its all-time high in November 2021. Currently, the GALA price is around $0.01669572, with a market capitalization of $431,728,183 USD.

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