Court grants preliminary relief in Allied Gaming’s lawsuit against Knighted

NEW YORK - The United States District Court for the Central District of California has granted preliminary relief to Allied Gaming & Entertainment Inc. (NASDAQ:AGAE) in its lawsuit against Knighted Pastures, LLC and several associated parties, according to a press release statement from the company.

On August 12, the court issued its full order supporting the preliminary relief granted on August 1, which enjoined the vote of directors at Allied’s annual meeting held on August 4. The court stated that "Allied has demonstrated it is reasonably likely to establish the Knighted Parties formed a group with Naomi Choi and So, under Section 13(d), and succeed on the merits of its claims."

The lawsuit alleges that Roy Choi, along with his mother Naomi Choi, business partner Yiu-Ting So, and Knighted Pastures engaged in a "year-long scheme to amass large quantities of AGAE’s stock without disclosure" to the company or its stockholders. Allied claims the group filed deficient Schedule 13D materials with the Securities and Exchange Commission as part of a coordinated effort to gain control of Allied’s Board of Directors.

The court has preliminarily enjoined any election of Allied’s Board until further court order.

Yangyang Li, Allied’s Chairman, CEO and President, called the ruling "a win for Allied’s stockholders," stating that the court recognized "compelling evidence of the Knighted Group’s undisclosed coordinated conduct."

Allied Gaming & Entertainment is a global experiential entertainment company focused on providing experiences to gamers and concertgoers through its assets, products and services.

In other recent news, Allied Gaming & Entertainment Inc. has appointed Yangyang (James) Li as its new CEO, with Li continuing his roles as President and Chairman of the Board. This leadership change occurs as Yinghua Chen transitions to a senior strategic role, focusing on the company’s subsidiary, Allied Esports International. Concurrently, Allied Gaming faces a delisting notice from Nasdaq for not holding an annual shareholder meeting within the required timeframe and failing to file its Q1 2025 financial report on time. The company has requested a hearing with a Nasdaq panel and scheduled its combined 2024/2025 annual meeting for August 4, 2025. In legal matters, Allied Gaming has filed a lawsuit against Knighted Pastures, LLC and others for alleged securities violations, accusing them of misleading stockholders. This legal action is part of a broader dispute, as Knighted Pastures has also announced its intention to nominate candidates for Allied’s Board of Directors, a move the company opposes. Allied Gaming argues that this nomination attempt aims to take control without offering a premium to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.