The partners of the Echo Fox franchise lost their bid for a temporary restraining order against Rick Fox in a Los Angeles courtroom on Friday morning.
Investor Stratton Sclavos, a former partner of the San Jose Sharks, requested the order, according to The Washington Post, which added that Sclavos' court filing said Fox had gone against the wishes of his partners in the actions he took with the esports organization.
The partners want Fox, a former NBA player who's now an actor, out of the organization that he helped to found. A week ago, League of Legends Championship Series announced that it is selling the open slot vacated by Echo Fox during the organization's time of turmoil.
LCS reached an agreement that terminates Echo Fox's participation. As part of the agreement, the LCS will sell the now vacant 10th slot in the league and "will provide the bulk of the proceeds from the sale to Echo Fox."
The Washington Post said eight partners sent a letter to Fox on Thursday night and accused him of "willful, wanton, and intentionally destructive efforts towards the Partnership." They blamed Fox for the organization's tumble from a value of $150 million 10 months ago to $31 million today.
"These are all lies, and this is collusion on the part of [business partners] Amit and Stratton to create the narrative they need to remove me from the control of the company that we started," Fox said in a phone interview with the Post on Thursday evening.
He disputed the $150 million valuation as well.
Raizada has been a central figure in the dispute between Fox, his partners and the LCS, and in an interview last month, Fox said the team was forced out of LCS because of Raizada.
On The Richard Lewis Show, Fox said Raizada went behind the company's back and acquired its debt, then "put a gun to the company's head and threatened to call the debt -- hence, setting the company into a tailspin."
Fox originally announced plans in April to leave the company after reports surfaced that Raizada allegedly used racist language aimed at Jace Hall, the former CEO of Echo Fox and head of Twin Galaxies, another organization owned by that group. Hall is African-American.