Former Infinium Labs VP Files Multimillion Dollar Lawsuit Against Company
- April 14, 2004 00:00 AM PST
Could this signal the demise of the Phantom console?
Terry Nagy, a former executive vice president of Infinium Labs, is suing the company and its principal officers for fraud and breach of contract. Nagy alleges that Infinium Labs used him for his knowledge of the video game industry, and while promising him a big payoff in shares of company stock, let him go without compensation."It's very clear what happened here," said Nagy's attorney, Michael Hurst of Godwin Gruber in Dallas. "Infinium used Terry, plain and simple. They used his knowledge and contacts, and even made him a corporate officer. Then, just as the payoff was about to happen, they dumped him over the side."
Nagy began work at the company in 2002 to acquire gaming content for the Phantom console, with Infinium Labs promising him 110,000 shares of pre-split Infinium stock as compensation. Although Nagy allegedly aided the company in acquiring $15 million in venture capital, in fall 2003, the company cancelled Nagy's e-mail and cell phone service, and CEO Timothy Roberts and COO Robert Shambro stopped returning his calls. Shortly after, the company traded its stock, giving Roberts and Shambro millions of shares of stock at $17-36 a share, while leaving Nagy with nothing.
The lawsuit was filed in the 134th District Court in Dallas County, Texas and names the company, Timothy M. Roberts, and Robert Shambro as defendants. Nagy is seeking the value of the Infinium stock the company allegedly owes him for his work.
