Tuesday, January 30, 2018

Loot Crate Sued Over Sexual Harassment, As It Seeks Investors

Los Angeles-based Loot Crate, which operates a monthly, subscription service that sends videogame- and geek-related "boxes" to its subscribers, has been named in a sexual harassment lawsuit, which was filed in the Los Angeles County Superior Court this month. The lawsuit, JANE DOE v. LOOT CRATE INC., filed January 5th, alleges that Loot Crate maintained a "fraternity-like" culture and that Loot Crate's controller engaged in a "continuous, severe, and pervasive campaign of sexual harassment" towards the anonymous plaintiff. The lawsuit--which seeks $10M in damages--also alleges that because of the company's culture, "instances of harassment could be seen everywhere." As evidence, the lawsuit presented evidence of a long chain of obscene text messages directed at the Plaintiff. The lawsuit comes at an inopportune time for Loot Crate, which reportedly hired an investment bank to help it find funding. That same report, from Reuters, says that three of Loot Crate's board members: Ynon Kreiz (former CEO of Maker Studios); Mark Suster (Managing Partner at Upfront Ventures); and Terry Boyle (President, Nordstrom Rack) have all resigned in recent weeks from the company's board. The attorney representing the Plaintiff is Jonathan LaCour, Managing Attorney with Employees First Labor Law--who is also a veteran of Southern California's startup ecosystem.