According to a report by The Washington Post, European esports organization G2 Esports have filed a lawsuit against blockchain technology company Bondly. The suit alleges that Bondly mishandled a deal developing and selling NFTs based on the esports team's branding. G2 claim the NFT company misled their team about Bondly's capabilities, as well as failed to meet several key deadlines. The resulting damages are cited as over $5.25M. The lawsuit was filed in the Los Angeles County Superior Court on Mar. 16.
The two companies originally began working together on a two-year contract starting on June 2, 2021. Bondly was responsible for developing and helping to sell G2's NFTs. The arrangement in the partnership contracts stated that the esports team intended to promote Bondly as an "Official Partner of G2 Esports", and gave the company G2's video, audio, and images pertaining to the team. The company was also subject to several fees — a $1.25M advanced guarantee, as well as a $2 million annual rights fee.
"Bondly and its agents knew that their representations were false when they made them, or made the representations recklessly and without regard to their truth," the filing stated. “They knew they could not perform, but cunningly waited until G2 had publicly announced its partnership with Bondly to its millions of fans to reap the benefits of publicity through the highly valuable G2 brand."
G2 assert in the lawsuit that after the first rights fee was due, Bondly responded that the company was unable to successfully deliver an NFT program. They also claim the two companies failed to agree on who was in charge of responsibilities noted in the contract. Bondly requested to pause the agreement, something the esports team rejected. According to G2's filing, Bondly attempted to end the agreement several weeks later because of the failure to reach an agreed-upon solution.
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