Gala Games Investors File Suit Against Founder, Alleging Burning $600 Million In Tokens

Last Thursday, True North United Investments LLC filed a complaint through its attorneys on behalf of Blockchain Game Partners (BGP), Inc. and investors in Gala Games against Gala Games CEO and Co-founder Eric Schiermeyer.

The complaint alleges “corporate waste, conversion, and unjust enrichment,” and calls for the removal of Schiermeyer as a director and president of BGP.

The legal action alleges an underhanded scheme and bad dealing from Schiermeyer, who the plaintiff says was acting without the knowledge or approval of shareholders.

These actions include:

• Directing BGP to burn $600 million in tokens
• Schiermeyer using BGP funds for personal purposes including loans worth millions of dollars made to himself
• Schiermeyer positioning himself as the controlling shareholder by establishing entities in Switzerland and Dubai
• Keeping True North's manager and BGP director, Wright Thurston, in the dark with incomplete and inaccurate financial information and refusing to provide complete financial records

The filing goes on to state that “Schiermeyer’s actions have been ongoing and have seriously damaged — and threaten to further damage — BGP. Those actions also have caused and threaten to continue to cause damage to the rights and interests of True North and various other minority shareholders arising under the Founders Agreement and from its position as a 44.762% shareholder of BGP.”

The filing was made in Utah with Salt Lake City as the intended venue for the suit. The plaintiff, True North consists of WWT Legacy Trust, SMT Legacy Trust, FRT Legacy Trust, TMT Legacy Trust, WJT Legacy Trust, TBT Legacy Trust, AMT Legacy Trust and NET Legacy Trust.

Schiermeyer filed a lawsuit, also on Aug. 31, against True North and Thurston. In his suit, Schiermeyer alleged that Thurston and his company misappropriated 8,645,014,077 GALA tokens in 2021.

Photo: Michael via Pixabay