Neon Machine is a game studio behind Shrapnel, the forthcoming first-person shooter blockchain game. Currently, it is entangled in a legal tussle related to a suspected takeover at the firm. A Monday report shows that the studio’s founders have filed a case against Cort Javarone, the chief executive officer of 4D Factory investment company and one of Neon’s investors.
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Additionally, the case mentions Steve Horowitz, a 4D equity holder, and Northern Pacific Group’s Scott Honor, a private equity company. The studio spun off from HBO in 2020.
The Neon founders behind the lawsuit include Don Norbury, the chief technology officer and studio head, Colin Foran, the Chief Creative Officer, Mark Yeend, the CMO, and Aaron Nonis, the chief operating officer. Others include Naomi Lackaff, Neon’s head of business development, and Mark Long, Neon’s allegedly expelled chief executive officer (CEO).
According to Law 360, Javarone appointed himself as Neon’s chief executive officer on November 13 and expelled Mark Long from the board of directors. (Long’s LinkedIn profile shows he is still Shrapnel CEO).
On Tuesday, Long posted on Twitter that he is still the chief executive officer. Concerning ‘come and take them,’ a Greek phrase, Long said the complaint speaks for itself, and he remains the CEO.
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The complaint also shows that Javarone is why Neon investors at Polychain Capital and Griffin Gaming Partners are not getting their preferred shares. According to the Neon executives, Javarone is attempting to take control of their studios and has acted against the contractual promises for incoming investors.
According to the complaint, the perpetrators seek to embed themselves in a board majority, resulting in considerable harm to Neon and putting it at risk of liability, amounting to millions of dollars.
This limits its present business activities and eradicates its capability to generate more funds.’ Neon’s executives are worried about Javarone reportedly ‘trying to attack Neon’s repository’ to address Javarone’s debts of $4.5M. According to the Law360 report, Javarone has allegedly filed for Chapter 5 bankruptcy for his businesses.
Neon has an estimated 70 workers in the blockchain gaming world and has experienced a considerable influx of investment funds. In October, a Series A round from the likes of Griffin and Polygon resulted in Neon generating $20M. Nevertheless, it remains unvivid if this new capital may be in danger.
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The assertions indicate the possibility of an internal takeover at the Seattle-founded studio, which might impact the future of Neon’s greatly-awaited extraction shooter game. Despite requests for comment, Javarone, Long, and Shrapnel’s PR time failed to provide any.
On Tuesday, the news regarding the lawsuit started swirling on Twitter. Afterward, a short statement was released by Shrapnel’s account. Shrapnel wrote that legal reasons made discussing the current proceedings impossible.
Nevertheless, its creators, players, and the vast community should know they are still entirely in control of the revolutionary AAA first-person extraction shooter’s funding, development, and operations. Shrapnel is also dedicated to delivering the initial access gameplay unveiling in the coming weeks.
Norbury’s Tuesday Twitter post revealed that Shrapnel is dedicated to safeguarding the project, team, and community. Shrapnel’s studio head said they are establishing an ultra-modern platform and a top-notch game, and nothing will prevent the execution of that mission.
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