Mythical Games Sues Former Executives For Violating Fiduciary Duty

An allegation has been laid against three C-suite members Rudy Koch, Chris Ko, and Matthew Nutt by their former employer Mythical Games who stated that they leveraged the company’s confidential information to raise $150 million in a funding round. According to Mythical Games, all three former executives violated their fiduciary duty in a bid to come up with their new firm Fenix Games. 

As such, the Andreessen Horowitz (a16z)-backed crypto gaming unicorn has filed a lawsuit against its former Senior Vice President Chris Ko, former Chief Operating Officer and former head of games Matt Nutt and co-founder Rudy Koch. The lawsuit which was filed in the Superior Court of the State of California in Los Angeles County’s Central District named all three executives as defendants.

Ko, Nutt, and Koch announced their departure from Mythical Games at the beginning of November, a few days before the company reduced its headcount by 10%. As a confirmation, they each took to their LinkedIn profile to talk about their resignation from the company as well as their upcoming opportunities. 

At the time, a Mythical Games spokesperson said “We are grateful to them for their leadership and the significant contributions they’ve made in helping the company get to this point, and wish them the best in the future.”

Former Executives Redirects Firm’s Investor

Before their exit, Mythical Games put the three of them in charge of generating capital for a new fund which was called Mythical Ventures. In the process of organizing the fund, one investor introduced them to a United Arab Emirates (UAE)-based leading multi-strategy crypto investment firm Cypher Capital. 

Instead of representing Mythical Games, the trio came up with another separate business plan for a new company and convinced Cypher Capital to invest in it.

Not long after, all three executives resigned from their positions in Mythical Games. A few weeks after, they announced that they had come up with a publishing platform called Fenix Game and they have raised capital from Cypher Capital and Phoenix Group.

Now, Mythical Games is asking for “restitution of the ill-gotten gains” and “punitive damages.” 

“I can say that we believe very strongly in the protection of our intellectual property and corporate assets,” Mythical Games’ Head of Communications Nate Nesbitt said. “In this instance, it was necessary to take these steps to rectify this situation and protect the company’s corporate interest, as is our duty to our employees and investors.”