CEO's Lawsuit Conspiracy from Members of the Studio's Board Members

Maker Studios is one of the leading producers for YouTube's channels initiative and has worked with Snoop Lion, Robert De Niro's Tribeca Enterprises and Kevin Smith. Time Warner is one of Maker's biggest backers, reportedly sinking $25 million into the company.
The complaint filed Tuesday in Los Angeles Superior Court discusses a power struggle at the company and offers the version of the story from those who lost it. Besides Zappin, company co-founders Scott Katz, Derek Jones and Will Watkins are suing Maker Studios, several of the company's other co-founders, board members, investors, lawyers and others.

Read Full Lawsuit... http://www.scribd.com/doc/150202413/Maker

According to the complaint, Ynon Kreiz "was dissatisfied by just being a Board member and wanted to become the CEO of Maker and touted [to venture capital board members] that he could turn Maker into a $1,000,000,000 company in three years; but, in order to do so he, would need to be assured, among other things, that he could not be fired from his position of CEO should the VC Board Members be able to secure such a position for him."

The lawsuit says that the board members, in alleged breach of their fiduciary duties, "entered into a series of quid pro quo agreements, including employment agreements, whereby they either caused stock to be issued" so as to create a favorable voting block that would control the company.

As a result of the moves, individuals including co-founders Lisa Donovan and Ben Donovan "obtained lucrative employment benefits for themselves." In particular, the lawsuit speaks about the issuance of equity grants.

The plaintiffs say that a combination of events, from the right to sell certain shares and the immediate vesting of 50 percent of all unvested stock allowed those adverse to Zappin to gain advantage. At the same time, Zappin says he informed Maker COO Michael DiSanto he might not sell his shares and "was forcefully told that he had to sell at least 600,000 shares or he would not get favorable treatment from the board."

UPDATED: The Time Warner-backed YouTube producer is slammed with a lawsuit that demands a court intervene in an alleged conspiracy from members of the company's board.

Read More.... http://www.hollywoodreporter.com/thr-esq/maker-studios-power-struggle-detailed-575754

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