Dota Player Sues Evil Geniuses For “Breach Of Contract” And “Fraud And Deceit”

Once synonymous with the Evil geniuses brand, Syed "SumaiL" Hassan has filed suit against the new ownership of EG

Syed “SumaiL” Hassan in happier times with Evil Geniuses

Legal filings obtained by this publication show that former Evil Geniuses prodigy Syed “SumaiL” Hassan has been in a legal battle with the North American organisation since December 2021. Attorneys representing the player, who currently plays for Emirati funded Nigma Galaxy, have made allegations of breach of contract and fraud against his former employer, which Evil Geniuses have denied.

The allegations relate to stock that was given to the player at the height of his stardom. In September 2016 the organisation was keen to retain his services for the foreseeable future and presented Hassan with 400,000 shares in the company. In 2019 the organisation was acquired by the Peak6 Strategic Capital group and as part of that merger Hassan’s stock was converted into 265,338 units of common stock and 106,667 units of restricted common stock.

The suit initially alleges that at this time no-one except Peak6 members received Preferred units of stock. Preferred stock grants its owner superior rights to common stock, such as higher dividend payments and more robust claims to assets in case of liquidation. The suit also alleges that when Hassan’s stock was converted no-one from the Peak6 group explained the nature of these changes of the basis of arranging them this way.

As part of the new structure Hassan was given a new contract in August (that was backdated to May) that was set to run until August 2020. This contract was a generous one granting a $20,000 monthly salary to the player and a number of bonus payments. However after a 5^th-6^th place finish at 2019’s The International tournament it seemed he was now surplus to requirements and no longer wanted. In September of 2019 Hassan was presented with an amendment to his player contract which he signed in order to be able to compete with other teams.

The amendment included a number of significant changes. While it freed Hassan of obligations to the organisation such as streaming and appearance duties, it reduced his salary to $2,000 per month and prevented him from competing at any competitions with his new team except the qualifier for the upcoming Dota Major. This amendment, and by extension his contract with EG, could be terminated for a one time fee of $125,000.

In November 2019 Hassan was then presented with a mutual release clause that would free him from any remaining contractual obligations. The suit alleges that this mutual termination agreement, unlike the previous contractual amendment, jeopardised his ownership stake within EG. They say that it “imposed harsh, unwarranted and draconian obligations and forfeitures” that later in the suit they deem to be unconscionable. They also state that the agreement “contained numerous irregularities, discrepancies, and inconsistencies, as well as a number of ambiguous and/or unenforceable terms and conditions” and “sought to use the imbalance of bargaining power” in a bid to force Hassan to forfeit his stock.

In February 2020 the player was sent a proposed unit purchase agreement for his stock. The total value of the proposed purchasing price was $1 million, with a $300,000 initial payment and a deferment of the remaining possible $700,000. The contingency for that latter amount was that it would be paid in three annual instalments starting on the day that the player officially announces his retirement. Hassan is only 24 years old and theoretically could have many years left in competitive play.

In summary the suit alleges that Evil Geniuses did not provide “complete and accurate information” for Hassan in this purchase agreement. They conclude that Hassan “also never received any value whatsoever for his shares and/or units, despite his long-term commitment and dedication to EG and its esports operations. Put simply, Defendants took advantage of a young, naïve and vulnerable Plaintiff by presenting unconscionable and ambiguous terms in numerous proposed arcane agreements to Plaintiff in multiple attempts to strong-arm Plaintiff out of the well-earned benefits of his labors and talent.” Later in the suit they also allege that Hassan was “coerced” into signing the termination agreement. The suit seeks damages and costs.

Evil Geniuses have denied all allegations in their response. The case had a number of delays, first with EG requesting more time to answer the complaint and another significant one relating to arguments about a number of unnamed defendants (John and Jane Does) being included in the action. The case is set to proceed to a jury trial which is scheduled for the 26^th June this year.

Editors Note: While a legal filing is a publicly available document we have not included the full copy here due to a number of details included in the exhibits that display information parties might not want made known to then general public such as email addresses etc.