TechFlow news, Shrapnel game studio Neon Machine is embroiled in a legal dispute involving an internal corporate coup. Six founders of the studio have filed a lawsuit in Delaware court against Cort Javarone, CEO of investment firm 4D Factory, along with other investors. The founders allege that Javarone attempted to seize control of the company and violated contractual obligations to new investors.
According to reports, Javarone was appointed CEO of Neon and removed original CEO Mark Long from the board. However, Long stated on Twitter that he remains the CEO.
The founders also accuse Javarone of blocking investors such as Griffin Gaming Partners and Polychain Capital from receiving their preferred shares. The lawsuit claims the defendants attempted to consolidate control over the board, causing significant harm to the company and potentially exposing it to tens of millions of dollars in liabilities. Meanwhile, company executives are concerned that Javarone is attempting to siphon company funds to cover his own $4.5 million debt, following his personal bankruptcy filing.
