East Side Games (EAGR) named in multi-million dollar lawsuit over breach of contract filed by Truly Social Games (TSG) in Portland, Oregon

PORTLAND, OREGON, UNITED STATES, December 15, 2022/ EINPresswire.com / -- East Side Games (EAGR) named in multi-million dollar lawsuit filed on October 28, 2022, by Truly Social Games (TSG) in Portland, Oregon.

The lawsuit states that on June 16, 2021, TSG and Leaf entered into a Membership Interest Purchase Agreement (“Agreement”). As written in the filed lawsuit, “In entering the Agreement, TSG’s leadership in Oregon relied on promises made by Leaf executives, including Jason Bailey, Josh Nilson, and Derek Lew that Leaf would fund the initial development of the Subject Titles for up to $3,000,000 and that Leaf would support the development of its games with analytics and reasonable collaborative support so that the two parties could maximize the profitability of the Subject Titles.”

According to documents filed with the United States District Court for the District of Oregon, Leaf Mobile, INC., a British Columbia corporation now doing business as East Side Games Group, INC.(EAGR), “Instead of supporting the development pursuant to the terms of the parties’ Agreement, Leaf refused to provide the necessary financial, marketing, management, and analytical backing for the online games, leaving the games developed by TSG in a state of disrepair and neglect, and in the process causing financial damage to TSG in the form of lost royalties and payments that were tied to the games’ performance.”

“In entering the Agreement, TSG also relied on historical metrics for various online games published by Leaf and projections provided by Leaf to TSG’s representatives in Oregon that detailed the estimated revenue share for Archer: Danger Phone. These projections, which were provided by Leaf in an attempt to induce TSG to enter the Agreement, demonstrated that achieving the revenue milestones in Sections 2.2 and 2.3 of the Agreement (and thereby receiving additional payments from Leaf) was a virtual certainty. For example, these projections, provided by Jason Bailey, identified that Archer: Danger Phone was likely to achieve, by itself, at least $2,000,000 in gross revenue per month.”

East Side Games (EAGR) Named in Multi-Million Dollar Lawsuit

However, the court documents filed by Truly Social Games state that “On October 12, 2022, Leaf directed TSG to shift the game Archer: Danger Phone into “auto pilot” mode and to effectively cease support and user acquisition for the game. Archer: Danger Phone was one of the more profitable games developed by TSG, bringing in over $1M in revenue over a 40 day period. By directing TSG to cease support for Archer: Danger Phone, Leaf caused revenue for Archer: Danger Phone to plummet, instead of continuing to increase. On information and belief, Leaf took this step, without consultation with TSG and in contravention of the parties’ expectations under the Agreement, in bad faith and in an effort to prevent TSG from accruing the benefits of the expected royalties and additional payments from Leaf under the parties’ Agreement.”

The court filing also alleges, “On October 13, 2022, Leaf transmitted a letter to TSG purporting to terminate the Agreement and the parties’ relationship thereunder.” It also alleges, “The day after sending the letter to TSG purporting to terminate the parties’ Agreement and shutting down Archer: Danger Phone, Leaf again enabled access to the Archer: Danger Phone game, effectively re-starting revenues for a game that Leaf now purported to claim for its own.” And that, “Leaf has done the same thing with Bud Master.”

The lawsuit states that these and other actions by EAGR represent a “calculated strategy of misrepresenting Leaf’s intentions in order to steal games developed by others” and that it is consistent with statements made by EAGR’s CEO, Jason Bailey.

Truly Social Games is represented by Corin Cronin LLP of 1015 Second Avenue, Floor 10, Seattle, WA 98154. TSG, as the plaintiff, has requested a trial by jury. As of December 13, 2022, the only response filed by EAGR with the court was a request for a continuance.

Watch this telling video of Gilbert Jason Bailey, CEO of East Side Games Group

Case number 3:22-cv-01663-AR Filed in United States District Court for the District of Oregon. As of December 12, 2022, the only response filed by EAGR with the court was a request for a continuance.

Patrick Tougas
Truly Social Games
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