July 16th, 2024
Posted By
Kerry V. O’Brien

On July 8, 2024, the O'Brien Law Firm sued a digital fantasy sports league startup on behalf of a former executive who claims over $526K in unpaid compensation from the company. The firm is also asking the court to clarify its client's rights with respect to awarded equity and company-issued crypto tokens.

As the lawsuit alleges: O'Brien's client was a former executive who was brought in to a technical position with the company to help develop its online fantasy sports gaming offerings. However, due to purported cash flow issues, the company stopped paying the executive in November 2022. The company founders made vague and ultimately hollow assurances to the executive that investment money was forthcoming, and that the company would first catch up on the executive's back pay when such investment funds came in. However, after 11 months of the company failing to meet his payroll, the executive had no choice but to quit.

The executive had a written employment agreement with company. As a result of that agreement, the executive has a right to certain compensation and benefits because he had to terminate his employment for "Good Reason." So in addition to his claim for over $240K in back pay and past bonus money, O'Brien contends that the firm's client is also entitled to another year of salary ($200K), his prorated 2023 bonus, and automatic vesting of any previously unvested stock and digital tokens.

Update in August 2026: In February 2026, the O'Brien Law Firm was able to get a final judgment in the client's favor in Cause No. DC-25-10679 in the 101st District Court of Dallas, Texas. The firm continues to work on collecting on that judgment for its client.