Neon Machine’s $20M Investment in Limbo Due to Legal Dispute

Six founders of Shrapnel Game Studio filed a lawsuit against investor Cort Javarone, alleging he is trying to take over the company against their wishes.
The lawsuit alleges Javarone appointed himself CEO, removed the previous CEO from the board, and is trying to take control of the studio’s finances and operations.
The studio released a statement saying it remains focused on launching its upcoming game Shrapnel despite the lawsuit, though it cannot comment on legal proceedings.

Six founders of Shrapnel Game Studio’s Neon Machine have filed a lawsuit against investor Cort Javarone, alleging he is trying to take over the company against their wishes. However, the studio says its upcoming game Shrapnel remains on track.

🚨 NEWS: @playSHRAPNEL creators Neon Machine face legal strain with allegations of an internal coup.

Allegations involve:

– Board manipulation

– Financial mismanagement

– Jeopardizing Neon's operations pic.twitter.com/Yd8BZg297s
— BlockNews.com (@blocknewsdotcom) November 28, 2023

Background on Shrapnel Studio and the Game

Shrapnel Game Studio was spun off from HBO in 2020. It is currently developing Shrapnel, a first-person shooter blockchain game set for release in early access in December 2022. The studio recently raised $20 million in funding.

Details on the Lawsuit and Allegations

The lawsuit was filed in the Delaware Court of Chancery by six Neon Machine founders, including ousted CEO Mark Long. It alleges Javarone appointed himself CEO on November 13 and removed Long from the board. Long asserts he remains CEO.

The founders say Javarone has not delivered preferred shares to recent investors as promised and is trying to take control of the studio’s finances and operations, exposing it to liability. They allege he is doing this to resolve his own debts and entrench his board control.

Company’s Statement

Shrapnel studio released a statement saying that while it cannot comment on legal proceedings, it remains in control of game development and operations. Studio head Don Norbury said the team remains focused on launching the game’s early access.

Conclusion Paragraph

The lawsuit alleges an internal takeover attempt that could significantly impact operations at Shrapnel Game Studio. However, the company maintains its anticipated game remains on track for release while the legal battle plays out.

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