Allegations include that LEAF/EAGR, with IP partners NBCUniversal, Disney, and Paramount utilized a calculated strategy of misrepresenting its intentions.

East Side Games Group (TSX:EAGR)

PORTLAND, OREGON, UNITED STATES, January 11, 2023 /EINPresswire.com/ -- A recently filed lawsuit alleges that LEAF Mobile, INC, which is now doing business as East Side Games Group, Inc. (EAGR on the TSX and EAGRF-OTC in the US), failed to uphold its agreements as listed in the Membership Interest Purchase Agreement with Truly Social Games, LLC (TSG).

Allegations made in the lawsuit include arguments that LEAF/EAGR, which has IP partners such as NBCUniversal, Disney, Creative Artists Agency, and Paramount, according to a recently published press release,
utilized a calculated strategy of misrepresenting its intentions to misappropriate games developed by others.

According to claims made in filings to the United States District Court of Oregon, this tactic is consistent with prior public statements made by EAGR's CEO, Jason Bailey.

The filing stated that "Bailey has made statements admitting that he intends to "rip off [] games" from others, that he tries to "get [his] employees to stand up and give [him] their great ideas so that [he] can steal them and own them and then they'll be mine and make lots of money from [the games] and pay them nothing because I am evil."

These statements made by Bailey were recorded and uploaded to YouTube by Full Indie and can still be viewed on the channel. The above quote begins at the 15:45 minute mark of the video entitled "East Side Games Saying Dirty Words on Stage - Jason Bailey".

According to the court filing, these statements are "also consistent with statements from Jason Bailey that he intends to "ruin" TSG. (Truly Social Games, LLC)."

The lawsuit further alleges "On information and belief, EAGR intentionally misled TSG into believing that Leaf/EAGR intended to abide by the Agreement when its real intention was to use TSG to develop games, refuse to pay TSG the amounts owing under the Agreement, and then steal the games that TSG developed for Leaf's own benefit."

According to the filed court documents, EAGR "has taken additional steps in furtherance of this unlawful strategy by continually attempting to get third parties under Leaf's control to appropriate the code base and artwork from TSG and by threatening to poach from TSG all of its software developers".

The lawsuit shows that TSG believes that EAGR committed Breach of Contract and Breach of Duty of Good Faith and Fair Dealing, among other infractions.

The Agreement refers to the Membership Interest Purchase Agreement
of June 2021, which representatives of both Leaf/EAGR and TSG signed. As written in the Agreement, the subject titles include Archer: Danger Phone, Roll for Adventure: Idle RPG, and Bud Farm: Bud Master. The fourth game title mutually agreed upon by LEAF/EAGR and the TSG Group in production and released as part of the Agreement was Trailer Park Boys: Get Merged!.

According to the lawsuit filed by TSG, "On October 13, 2022, Leaf/EAGR transmitted a letter to TSG purporting to terminate the Agreement and the parties' relationship thereunder." The document also alleges that "Leaf/EAGR failed to cite any reason for terminating the Agreement."

TSG also alleges that "By attempting to terminate the Agreement while Leaf was in breach of the Agreement and while TSG was in full performance under the Agreement, Leaf has breached, and continues to breach its duty of good faith and fair dealing under the Agreement."

Truly Social Games, LLC has requested a trial by jury. TSG is seeking $100 Million US in damages from East Side Games Group, which is IP Partners with such companies as NBCUniversal, Disney, Creative Artists Agency, Paramount, and WOW, according to a recently published press release.
Case 3:22-cv-01663-AR Document 1 Filed 10/28/22

Attorneys for the plaintiff listed in court documents are Corr Cronin LLP, located at 1015 Second Ave, 10th Floor, Seattle, Washington 98154.

Patrick Tougas
Truly Social Games
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East Side Games Saying Dirty Words on Stage - Jason Bailey