UPDATE: Danny Zappin Files Lawsuit Against Maker Studios, Claims ‘Constructive Fraud’

UPDATE 6/26/2013 7:03 p.m. PT: NMR has obtained the company email Maker CEO Ynon Kreiz sent out addressing the Danny Zappin suit. It can be seen by clicking here.


UPDATE 6/26/2013 3:20 p.m. PT: Maker Studios has responded to the lawsuit stating:

“The lawsuit is without merit and the allegations are baseless. We regret that Danny is taking this step and involving the Company he co-founded in litigation.”


YouTube multi-channel network Maker Studios is being sued by co-founder Danny Zappin according to Variety. Maker announced in May that Zappin would be stepping down as CEO and replaced by chairman Ynon Kreiz who would act as executive chairman.

Zappin and three additional founding executives — Scott Katz, Derek Jones and Will Watkin — are claiming that Maker concealed important facts, breached fiduciary duty and gained an unfair advantage over Zappin using deceitful methods.

MakerVid

Variety explains: “Maker Studio’s new board diluted the common stock in favor of preferred stock, including to regulate the common stock to minority status, for the purpose of electing director seats and ‘ousting Zappin as Maker CEO.’

The lawsuit claims that Maker Studios “conspired and agreed to use their power to line their pockets with Maker’s assets, to deny Mr. Zappin, Maker’s then chief executive officer (‘CEO’), of all of his powers, and to gut the rights of common stock shareholders to control Maker and its corporate activities.”

The four filing the lawsuit have requested that Maker Studios remove its current board of directors and put in place a temporary restraining order. Unspecified monetary settlements have also been demanded according to the lawsuit.

Listed defendants in the lawsuit include Ben and Lisa Donovan, Mark Suster, Dana Settle, Rachel Lam, Michael DiSanto and GRP Partners.

Document via All Things D

Related news:

BREAKING: Maker Studios CEO Ynon Kreiz Sends Company-Wide Email Addressing Danny Zappin Lawsuit

UPDATE: Danny Zappin Files Lawsuit Against Maker Studios, Claims ‘Constructive Fraud’

Is Maker Studios On Track To Becoming YouTube’s Electronic Arts?

Danny Zappin Steps Down As Maker Studios CEO, Executive Ynon Kreiz Takes Over