E-sports organization FazeClan has filed a counter lawsuit against Turner “Tfue” Tenney, alleging that Tenney has brought “negative attention to FaZe Clan” and is attempting to “start a new esports organization.”
In the initial lawsuit filed by Tenney against FaZe Clan, Tenney asserted that the contract he had entered into with FaZe was “oppressive”, claiming that FaZe Clan retained “a grossly unconscionable commission for sourcing [a sponsorship deal] up to eighty percent (80%)” and attempted to “prevent Tenney from procuring or 22 negotiating such employment opportunities without Faze Clan.”
However, in their countersuit, FaZe Clan alleges that Tenney violated his contract, which is still legally binding “through October 7, 2021,” by “using FaZe Clan’s trade secrets and confidential information, as described above, to create a competing organization or otherwise compete against FaZe Clan” and “caused damage to FaZe Clan, including the termination of certain brand sponsorship deals and the forced renegotiation of brand deals on less favorable terms.” The team also stated that they “schooled Tenney in the business, social media and gaming practices that have made FaZe Clan successful,” noting that he has earned “$20 million since joining FaZe Clan in April 2018” thanks to their assistance.
FaZe Clan is seeking “damages in the amount according to proof at trial, plus interest at the legal rate,” as well as “permanent injunctive relief” from Tenney disparaging the company, interfering with their business dealings, and using their trade secrets.
“Faze Clan’s lawsuit in New York is a ridiculous and obvious attempt to avoid the consequences of its clear violations of California law. Filing the lawsuit in New York is actually an admission that Faze Clan has no defense to these violations of California law. Ask yourself, why is Faze Clan is afraid to litigate its wrongful conduct in California? The answer is obvious. Faze Clan will lose. In the New York lawsuit, Faze Clan actually admits to violating California’s Talent Agencies Act by procuring employment without a license. Equally egregious is the fact that Faze Clan is suing Turner under its illegal contract for the monies it publicly represented that it was not collecting. This is the first time in the history of Esports that an Organization has had the audacity to try and enforce contractual provisions that are so clearly illegal against one its gamers.”