Popular social media influencer Alissa Marie Violet Butler, better known as Alissa Violet, has sued FaZe Clan claiming she is owed shares in the top-tier esports organization, which has been valued at roughly $300 million.
The suit from Butler revolves around the resolution of another lawsuit in which Butler and FaZe Clan were involved. According to the claim filed by Butler, in 2018 she entered into an agreement with FaZe Clan to transfer shares in a social media entertainment company Butler co-founded called Clout Gang to a company called Hubrick Limited. Hubrick Limited had partnered with FaZe Clan to develop both businesses. In exchange, Butler received stock in Hubrick Limited. Several members of FaZe Clan likewise transferred shares in FaZe Clan for shares of Hubrick Limited, according to the new lawsuit.
The partnership between FaZe Clan and Hubrick dissolved in acrimony, and later that year, FaZe Clan, Clout Gang, Butler and multiple others sued Hubrick Limited for fraud. Hubrick then countersued, also alleging fraud.
According to Butler’s complaint, FaZe Clan and Butler entered into an oral agreement to settle the lawsuits with Hubrick wherein Butler would give up her Hubrick stock and claims against the company and would then be made whole by receiving FaZe Clan common stock. Butler claims in her lawsuit against FaZe Clan that when the parties settled the Hubrick suit and she relinquished her Hubrick shares, she did not receive the promised shares in FaZe Clan.
The complaint does not specify a dollar amount for damages.
FaZe Clan, in its response to Butler’s lawsuit, “denies generally and specifically each and every allegation contained in the Complaint.”
Bryan Freedman, Butler’s attorney, expounded on the lawsuit’s claims Monday.
Faze Clan is being sued because it specifically promised to compensate Alissa when it asked her to relinquish her Hubrick stock and asked her to dismiss her claims against Hubrick and others. If Faze Clan simply abided by its promise to compensate her, Alissa would not have had to sue Faze Clan.
Freedman said in a phone call with The Washington Post
In a emailed statement Monday, Faze Clan CEO Lee Trink wrote: “Stories get created out of any disagreement or dispute, big or small. … On this particular matter we’re in close communication and confident it’ll be resolved amicably.”
Butler, who has millions of followers across social media and is featured on a platinum single (“It’s EveryNight Sis”), was previously involved in a romantic relationship with FaZe co-owner Richard “FaZe Banks” Bengtson. That relationship ended in 2019.
The lawsuit marks the newest legal saga for FaZe Clan, which has found itself in federal court to fight at least three separate cases since 2018 — in addition to several state cases. FaZe Clan was previously in litigation with a clothing brand regarding alleged trademark infringement, as well as with popular Twitch streamer Turner “Tfue” Tenney over the terms of his contract.
