SumaiL v. EG: A Legal Battle Over Alleged Fraud and Breach of Contract

The Background

According to legal documents the lawsuit has been ongoing since December 2021. The core of the dispute revolves around SumaiL’s contract with EG, which spanned from January 2015 to 2020. The primary focus is on the agreement he inked with the organization in September 2016.

Under this contract, SumaiL, a rising Dota prodigy at the time, was reportedly granted an ownership stake in EG. This was in the form of 400,000 shares, in addition to his salary. However, the dynamics shifted when the Peak6 Strategic Capital group acquired EG in May 2019.

Following the acquisition, stock holdings were restructured. SumaiL’s stake was divided into 265,338 units of common stock and 106,667 units of restricted common stock. Lewis investigation suggests that only Peak6 members were granted the more valuable preferred stock during this transaction. Moreover, it’s alleged that the then 20-year-old SumaiL was kept in the dark about these changes.

Further Complications

In August 2019, SumaiL signed another contract with EG for an additional year. This contract promised him a USD 20,000 monthly salary, along with other bonuses. However, after EG’s fifth-place finish at The International 9, the organization presented SumaiL with a revised contract in September. This move shifted him to the inactive roster.

This new contract slashed SumaiL’s salary to USD 2,000 per month. It also removed certain obligations, such as streaming, but restricted his ability to compete with other teams. Unlike other players shifted to the inactive roster, SumaiL was reportedly not free to pursue a full-time role with another team while still under contract with EG.

In November, EG proposed a mutual release clause to SumaiL. This would terminate the contract early without the USD 125,000 buyout fee. However, this clause would impact his ownership stakes. The termination agreement was described as imposing harsh, unwarranted, and draconian obligations and forfeitures. Allegations arose that EG was leveraging SumaiL’s inactive contract status to pressure him into relinquishing his stock and ownership stake.

The Aftermath

After departing EG to join OG in January 2020, SumaiL was approached by EG with a proposal to buy his company stock for USD 1 million. Of this amount, USD 300,000 would be paid upfront, while the remaining USD 700,000 would be disbursed in three annual payments post his retirement from competitive play.

Currently, SumaiL’s representation argues that EG exploited a young, naïve, and vulnerable player through multiple ambiguous agreements. They are now seeking damages for these alleged injustices. EG has refuted all claims, but the case is scheduled for trial on 26 June.

EG’s Other Controversies

This isn’t the only controversy surrounding EG. The organization has faced accusations of mistreating its 19-year-old League of Legends player, Kyle Danny Sakamaki. Additionally, their CS:GO division has been criticized for its recent performance and management. EG also received backlash for relocating its North American Dota roster to South America post-TI10.

On the other hand, SumaiL continues to compete at Dota’s pinnacle. He recently joined Nigma Galaxy and is participating in the 2023 Dota Pro Circuit in Europe.

The Trial

Although SumaiL won’t be competing at Dota 2’s The International this year, he will be in the spotlight as his legal battle with EG progresses to trial on 6 November 2023.

Richard Lewis, who initially reported on the lawsuit, has provided updates. He revealed that key witnesses have been contacted for testimonies after most of EG’s 26 requests for admission were rejected by SumaiL’s legal team.

A trial date is set for 6 November 2023, with several ex-EG staff and players, including Fear, Universe, Arteezy, Cr1t, and Peter ppd Dager, listed for deposition. The final conference to confirm trial details is expected in late October.

As the legal battle unfolds, SumaiL is gearing up for the next chapter of his Dota career with Team Secret post-TI12.

Sumail Syed v. The Evil Geniuses et al., Superior Court of the State of California, 21stcv46952

Counsel to Sumail Syed

• Sidiqqui Law, APC
  • Omar A. Siddiqui and Daniel M. Josephson
• Christian Yoo

Counsel to Evil Geniuses

• Masuda
  • Asa W. Markel
• Rimôn
  • Michael Vargas

Image Source: Peter Rist, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons