Motorsports Games Inc. website. Shareholders Say Auto-Racing Video Game Developer Played Them in Deal Before IPO
In a complaint filed Monday in the District of Delaware, HC2 Holdings 2 Inc. and Continental General Insurance Co. allege majority shareholder Motorsport Games Inc. portrayed 704Games Company as being unprofitable and bought out their shares for $1.2 million, then months later went public with shares trading at more than 170 times that buyout value.
February 10, 2021 at 12:03 PM
3 minute read
Two former shareholders have alleged in federal court that an auto-racing video game creator swindled them out of more than $200 million in stock.
In a complaint filed Monday in the District of Delaware, HC2 Holdings 2 Inc. and Continental General Insurance Co. allege majority shareholder Motorsport Games Inc. portrayed 704Games Co. as being unprofitable and bought out their shares for $1.2 million, then months later went public with shares trading at more than 170 times that buyout value.
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