East Side Games Group Lawsuit Alleges Financial Misconduct
Allegations in the filing state, “Leaf (EAGR) has been unjustly enriched by accumulating revenues and subscription fees that would have otherwise accrued to TSG
East Side Games Group (TSX:EAGR)
PORTLAND, OREGON, UNITED STATES, February 14, 2023 /EINPresswire.com/ — East Side Games Group lawsuit alleges financial misconduct concerning its dealings with Truly Social Games (TSG). According to documents filed in the District Court of Oregon, TSG has made five allegations against Leaf Mobile, now operating as East Side Games Group, Inc. (EAGR on the TSX and EAGRF-OTC in the US), including breach of contract, breach of fiduciary duty, and unjust enrichment among others.
The court documents submitted in October state that TSG claims East Side Games Group, formerly known as Leaf Mobile, “has failed to provide the necessary financial, management, and analytical backing, leaving the games developed by TSG in a state of disrepair and causing financial damage to TSG.”
“By failing to reasonably fund and support the development of the online games as contemplated by the Agreement, Leaf (EAGR) has breached, and continues to breach its duty of good faith and fair dealing under the Agreement.”
East Side Games Group Lawsuit Alleges Financial Misconduct
The allegations in the lawsuit also include other statements that point to other unfair business practices as well. For example, TSG claims in the filed documents that “After failing to uphold its end of the bargain, Leaf (EAGR) now seeks to improperly terminate the contract steal for itself the code base and artwork created by TSG, and excuse itself from any further obligations.”
Another of the financial misconduct allegations in the lawsuit refers to a tax refund received by TSG. The court documents allege that “On October 12, 2022 Leaf demanded, without justification, that TSG use the proceeds from a tax refund received from the Canadian Revenue Agency to fund its operations, instead of relying on payment from Leaf. Leaf withheld payment from TSG under the Agreement on account of this refund, effectively starving TSG of needed and promised payments under the Agreement.”
Truly Social Games Seeking $100 Million from East Side Games Group
As allegations in the court filing state, “Leaf (EAGR) has been unjustly enriched to the detriment and impoverishment of TSG, not least by accumulating revenues and subscription fees that would have otherwise accrued to TSG and TSG’s impoverishment is a direct result of Leaf’s unjust enrichment.”
Further on in the documents, TSG alleges, “Leaf’s attempt to appropriate the game that TSG developed and cut TSG out of any further revenue sharing arrangement is a calculated business strategy by Leaf (EAGR) designed to exploit developers for Leaf’s benefit.”
The complaint, filed with the United States District Court for the District of Oregon, is Case 3:22-cv-01663-AR, Filed 10/28/22. Corr Cronin LLP, located at 1015 Second Ave, 10th Floor, Seattle, Washington, is listed as the plaintiffs’ attorney.
Patrick Tougas
Truly Social Games
+1 971-312-8090
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