Six founders of Shrapnel studio Neon have filed a lawsuit in a US court to stop the studio’s controlling shareholder Cort Javarone from “raiding or attempting to raid Neon’s coffers”, according to a report in New York-based legal news service Law360.
The suit has been filed against Javarone, who is the founder and CEO of media tech company 4D Factory, and two directors, for “refusing to issue preferred shares that were contractually promised to new investors”, Law360 reports.
Javarone is said to have appointed himself CEO, after deposing current Neon CEO Mark Long on November 13, but Long said Tuesday that he remains in charge:
According to the complaint, Javarone and his two directors are stopping Neon from issuing shares to venture capital firms Griffin Gaming Partners and Polychain Ventures in exchange for an $8 million investment they made in Neon in September 2021.
Law360 reports that the founders have said Javarone wants control of Neon’s bank accounts to pay off $4.5 million of debt in other businesses he owns.
Shrapnel is a blockchain extraction shooter that is due to release in beta form in December, with a full release expected mid-2024.