Gala Games Founders Sue Each Other Over Alleged $130M Theft

Gala Games executives Eric Schiermeyer and Wright Thurston have taken each other to court over alleged theft and corporate waste.

Cartoon boy looking through a portal seeing GALA Games in a lawsuit.
Created by Kornelija Poderskytė from DailyCoin
  • An internal strife is brewing at Gala Games.
  • Two founders have taken each other to court.
  • Both parties are seeking to oust each other from their jobs.

Gala Games reportedly faces a brewing internal turmoil, culminating in two of its founding partners locking horns in court on August 31.

The project’s co-founders, Eric Schiermeyer and Wright Thurston, filed separate lawsuits in a Utah District Court, one alleging a $130 million theft and the other pointing out an alleged corporate waste.

Gala Games CEO Eric Schiermeyer filed a 76-page Verified Shareholder Derivative Complaint accusing co-founder Wright Thurston, alongside his trading company True North United Investments, of stealing 8,645,014,077 GALA tokens (worth around $130 million) from the company.

Per Schiermeyer’s filing, it is alleged that Thurston deliberately initiated a complex web of obfuscatory transactions through which he moved, exchanged, or sold the said tokens before Gala could take action.

Moments after the first lawsuit, Thurston’s True North United Investments filed another lawsuit, accusing Schiermeyer of causing Gala company to sell off and waste millions of dollars in company assets, some of which he allegedly lent to himself for personal expenses.

In the counterclaim, Thurston alleges that Schiermeyer created offshore entities under Gala in Dubai and Switzerland, where he made himself the controlling shareholder and squandered nearly $600 million in company assets.

Seeking to Oust Each Other From Their Jobs

As the two top executives are embroiled in the legal battle that just started, they are out to see each other removed from their jobs. Schiermeyer has asked the court to find Thurston guilty of theft and consequently order his removal as a director at Gala.

Similarly, Thurston has requested that Schiermeyer be removed as the CEO of Gala and that at least $750 million in damages and relief be paid.

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Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.