O’Brien Law Firm sues digital fantasy league startup SimWin Sports, Inc. in Dallas County on behalf of former executive who claims over $526K in unpaid compensation
On July 8, 2024, the O’Brien Law Firm sued Simwin Sports, Inc. 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 SMWN 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, SimWin Sports stopped paying the executive in November 2022. Company founders David Ortiz (CEO) and Scott Beckmen (then-Chief Legal Officer, now Of Counsel with the Spencer Fane law firm) 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 SimWin Sports. And 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 SMWN tokens.
The company’s initial answer to the lawsuit is due in court on August 5, 2024. O’Brien anticipates that the company will deny all of the allegations, as is the company’s right per Texas court rules. That case is Cause No. DC-24-09936 in the 14th Judicial District Court of Dallas County, Texas, the Honorable Eric Moyé, presiding.