Update: FaZe Clan is Getting Sued by Alissa Violet

[Animous]

UPDATE: A previous version of this post stated that Alissa Marie Butler was sued for fraud, however, Butler was sued for breach of contract.

Over the last twenty years, esports have gone from a relatively niche scene to a multimillion-dollar industry. With that much money moving around, not everyone will agree on how to divide it up.

Social media influencer Alissa Marie Violet Butler, who goes by Alissa Violet online, recently filed a lawsuit against esports team FaZe Clan. Butler claims she is owed shares in the company as part of a previous agreement with the $300 million organization. The lawsuit’s dollar amount is unknown, but this is just the latest installment in an ongoing series of legal disputes involving both parties.

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The lawsuit stems from a previous case Butler and FaZe Clan filed against Hubrick Limited. In 2018, Butler and FaZe Clan entered a partnership with Hubrick. Part of the deal included Butler, a massively popular social media influencer, transferring shares of her media company Clout Gang to Hubrick. Butler and FaZe Clan later sued Hubrick for breach of contract. Hubrick responded with a countersuit. All parties ultimately settled out of court.

However, the terms of that settlement led directly to Butler’s current lawsuit against FaZe. According to Butler, she agreed to give up her claims against Hubrick in return for shares in FaZe Clan, which the esports organization has failed to provide. Complicating the situation is the fact that this alleged agreement was apparently verbal in nature. There is also the matter of Butler’s previous romantic relationship with FaZe Clan co-founder Richard “FaZe Banks” Bengtson potentially muddying the water further.

FaZe Clan denies all of Butler’s allegations, with CEO Lee Trink saying, “Stories get created out of any disagreement or dispute, big or small.” However, both parties are in close communication, according to Trink. As a result, he is confident that they can resolve the dispute to both side’s satisfaction.

Trink may be speaking from experience as this is far from the first time FaZe Clan has found itself embroiled in a legal battle. In addition to the Hubrick case mentioned above, the company has been involved in several state and federal lawsuits over the last few years. Among them was a copyright infringement case against a clothing brand and a contract dispute with streamer and esports athlete Turner “Tfue” Tenney.

It’s hard to make any predictions this early in the case, as both sides are at least maintaining the appearance of confidence. However, it may be difficult for Butler to prove her allegations without a written contract as evidence. That said, Butler could use her significant social media presence as leverage against FaZe Clan, who may prefer avoiding a public spectacle. Trink’s comments also lend further credence to the idea that compromise isn’t off the table.

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