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Cake day: June 15th, 2023

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  • On March 28, 2022, U.S. federal judge Stephanos Bibas accepted a motion by investors Innovate 2 Corp., Continental General Insurance Company, and Leo Capital Holdings LLC to sue Motorsport Games in the United States District Court for the District of Delaware. In the filing, the investors accuse four Motorsport Games executives of securities fraud, claiming that the executives provided misleading statistics to the remaining investors of 704Games about the company’s financial situation and the sales performance of its main product, the NASCAR Heat franchise. The investors allege that the information they received allowed Motorsport Games to buy out the remaining shares of 704Games at a significant discount to what Motorsport Games offered at their IPO, at which point the NASCAR Heat series accounted for a majority of Motorsport Games’ total net revenue, estimated at 99%. [48]

    In November 2022, Motorsport Games received a notice of non-compliance with Nasdaq listing rules after its board of directors resigned over funding disputes. The company reported losses of $7.5 million against revenue of $1.2 million in the third quarter of 2022.[49]

    In January 2023, Motorsport Games organised the fourth annual Le Mans virtual 24-hour endurance race, a parallel to the real-life 24 Hours of Le Mans event. The race took place in Motorsport Games’ sim racing video game rFactor 2 and featured notable motorsport drivers such as Formula One World Champion Max Verstappen and former Formula One driver Romain Grosjean. The event was plagued with server issues and disconnections, and featured a lot of backlash from participants. Verstappen described the event as a “clown show”[50] and online content creator and participant Jimmy Broadbent stated that this would ultimately “damage sim racing”[51] as a medium. Several days after the event, an anonymous employee threatened to publicly leak the source code for NASCAR Heat 5, NASCAR 21: Ignition, KartKraft, and the unreleased IndyCar game unless unpaid wage payments were made.[52]

    https://en.m.wikipedia.org/wiki/Motorsport_Games

    Seems like a well-run company.