Eric Schiermeyer, CEO of Web3 entertainment startup Gala Games, has filed a lawsuit against the company’s co-founder, Wright Thurston. Schiermeyer has alleged in the lawsuit that Thurston stole 8.6 billion GALA tokens in 2021 and sold them for $130 million. Following the lawsuit, the price of GALA tokens has dropped by 13%, media reports said.
Schiermeyer filed the lawsuit on August 31, and the same day, Thurston also filed a lawsuit against Schiermeyer and alleged that Schiermeyer took control of Gala Games to use the company’s funds for personal purchases, including a private jet.
Gala Games, a Web3 GameFi startup, was co-founded by Thurston % in early 2019, with each receiving 50% ownership. Some publications have mentioned Michael McCarthy as the third co-founder. But his name is not mentioned in any of the lawsuits. Gala Games recently launched turn-based RPG game Champions Arena for mobile devices. It also has a significant interest in digital collectables, blockchain-based music, and films.
Schiermeyer’s lawsuit alleges that Thurston “has founded numerous companies, most of which have ended up in litigation, insolvent, bankrupt, and/or sued by the SEC.” His main allegation is Thurston stole more than 100% of the GALA tokens in circulation at the time of the theft.
Thurston’s lawsuit retaliates, “Schiermeyer’s malfeasance, mismanagement, and self-dealing have resulted in hundreds of millions of dollars in damage to [Gala]’s reputation and company and shareholder assets.”
