Former Esports Entertainment Group CEO seals $500,000 settlement with operator
Grant Johnson’s legal battle against former employer comes to an end as company agrees to cash payout on monthly basis
Former Esports Entertainment Group (EEG) CEO Grant Johnson will receive a $500,000 (£398,932) severance payment after the operator entered into a confidential settlement agreement with its former boss.
Johnson, who served as EEG’s CEO for more than nine years, sued his previous employer on 23 December 2022 for unfair dismissal after he left the firm in December 2022.
Johnson filed the complaint with the District Court for the Southern District of New York, in which he claimed EEG breached his employment contract.
At the time of the dismissal, EEG did not grant Johnson a 60-day notice period on the grounds the former CEO had committed “fraud, wilful misconduct, and/or gross negligence.”
In his initial claim, Johnson sought in excess of $1m as well as 2,000 shares of the company’s common stock, plus attorney’s fees.
Then, on 28 February, Johnson filed an amended complaint to supplement his original case, along with a claim for instance of defamation of character.
Legal to and fro followed, with EEG filing a pre-motion letter requesting the case be dismissed on 14 March and Johnson filing a letter one day later requesting the claim not be dismissed.
At a pretrial conference on 4 May, EEG decided not to move forward with the motion to dismiss the case and began preparing documents for the “discovery phase and response” to Johson’s claims.
As detailed in EEG’s Q3 report, on 7 November the company entered a confidential settlement agreement with Johnson.
Under the terms of that agreement, Johnson will receive an aggregate payment of $500,000 in cash, which includes attorney fees and costs.
An initial payment of $50,000 has been made, with subsequent payments of $50,000 to be paid on the 30th of each month until paid in full.
The agreement was borne out of a settlement conference heard on 6 November in front of US Magistrate Judge Katharine H. Parker.
Elsewhere, EEG has had a tumultuous 2023, including axing 37% of its workforce and selling its Bethard brand for less than €10m.
Along with Johnson departing the operator in December 2022 under a dark cloud, EEG shuttered its Argyll Entertainment arm comprising SportNation and RedZone.