Ebet and Btobet have taken legal action against Aspire Global, each in different jurisdictions, raising allegations of misrepresentation and breach of obligations.
Ebet filed its lawsuit in the Eighth District Court of Clark County, Nevada, while Btobet’s case landed in the Business and Property Courts of England and Wales.
The root of Ebet’s legal challenge dates back to May 2021 when the company entered into an agreement with Aspire Global to acquire specific B2C assets.
These assets were supposed to include websites, domains, and intellectual property. As part of the transaction, Aspire Global established a special purpose entity named Karamba Limited.
Ebet now contends that they relied on fraudulent representations made by Aspire Global during the deal negotiation.
Ebet’s primary allegation revolves around what it claims to be false representations by Aspire Global.
They argue that Aspire provided inaccurate information regarding the number of player accounts they possessed. Moreover, Ebet accuses Aspire of inflating these numbers intentionally to secure the deal.
Ebet also alleges that Aspire was aware of its inability to obtain an online gaming license in Germany due to a missed payment, yet failed to disclose this crucial detail.
In addition to the player accounts issue, Ebet accuses Aspire Global of misrepresenting their operating expenses in their audited financials, leading Ebet to believe they were purchasing a business with an annual revenue of approximately €65 million.
This alleged misrepresentation is seen as a breach of the representations and warranties outlined in the share purchase agreement.
On the other hand, Btobet’s legal challenge involves co-founders Sousa Enterprises Ltd and Eltsar Ltd as claimants.
It centers on a special purchase agreement from September 2020, which was associated with Aspire Global’s €20 million acquisition of Btobet at the time.
The primary focus of the dispute lies in clauses related to earnout.
Sousa and Eltsar contend that Btobet incurred additional jurisdiction costs in 2022 while attempting to expand Aspire’s presence in various jurisdictions.
Aspire, according to the lawsuit, failed to pay these additional fees, thereby breaching its obligations under the agreement.
In both cases, the companies are seeking legal remedies for what they perceive as wrongful actions by Aspire Global, setting the stage for legal battles in their respective jurisdictions.
The outcomes of these cases will determine the extent of liability for Aspire Global and could have significant financial implications.