On March 13th, it was reported that professional Dota 2 player Syed “Sumail” Hassan has taken legal action against his former team, Evil Geniuses (EG), over allegations of breach of contract and misinformation.
According to documents made public in the United States, Sumail’s attorney has claimed that the legal case involves his client’s ownership shares in EG. This legal battle comes after Sumail believes that EG planned to commit fraud by failing to provide accurate information about the ownership shares he acquired in 2016.
The report states that in September 2016, Sumail received 400,000 shares after signing a long-term contract with EG. When Peak6 Strategic Capital acquired EG in 2019, these shares were then divided into 265,388 common shares and 106,667 restricted shares. Sumail claims that only members of Peak6 received preferred stock, and that he was not informed of this change.
As a result of the restructuring, Sumail was offered a new one-year contract with a monthly salary of $20,000 USD beginning in August 2019. However, when EG finished fifth at The International 9, Sumail was no longer considered a viable option for a regular position.
EG then presented Sumail with a contract amendment that reduced his salary to $2,000 per month and banned him from competing with his new squad in any competition except the qualifier for the upcoming Dota Major.
The lawsuit asserts that a mutual release clause given to Sumail in November 2019 compromised his ownership in EG. The clause was said to have “imposed punitive, unreasonable, and draconian requirements and forfeitures” and sought to exploit the imbalance of bargaining power in an attempt to force Sumail to give up his stock.
A suggested unit purchase agreement for Sumail’s stock was later delivered to him in February 2020. The entire suggested purchase price was $1 million USD, with a $300,000 down payment and a postponement of the remaining $700,000. The latter amount was scheduled to be paid in three annual installments beginning on the day the player formally announced his retirement.
EG has refuted all charges in their answer. The lawsuit was delayed several times due to disagreements over the inclusion of a number of unidentified defendants in the action. The matter is set to go through a jury trial on June 26th this year.
Sumail, who gained fame during his time with EG, has taken legal action against the team he once called home. It remains to be seen how this legal battle will affect the Dota 2 community and the future of professional esports.
