Danny Zappin, former CEO of Makers Studio, is suing his cofounders and his former investors, alleging that they secretly conspired to dilute his ownership and reduce his ability to control the company, reports Peter Kafka at AllThingsD.
The company’s response is to call the lawsuit “without merit and the allegations are baseless.”
It’s another ugly chapter in the nasty, public battle at Makers Studio, a company that makes original content for YouTube.
Zappin stepped down from the CEO role in May but remained on the company’s board. That was a few months after Makers Studio announced a $36 million investment led by Time Warner Investments in December. Other big names, like Robert Downey Jr., pitched in, too.
That same month one of Makers’ big stars, YouTube sensation Ray William Johnson, went public with a big fight over the terms of a new contract. That fight led to Zappin to make a startling confession that he was once convicted for felony drug possession.
When Zappin left the CEO job, his official departure email made it sound like a voluntary move, having nothing to do with the Johnson brawl. But this suit alleges that he was really forced out.
Here’s a link to the full legal document.
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