The US Ninth Circuit has a restraining order against PlayUp

The US Ninth Circuit has a restraining order against PlayUp

The US Ninth Circuit Court of Appeals upheld the temporary restraining order imposed on Laila Mintas by PlayUp. Mintas was appointed as the CEO of PlayUP in 2020 but after a failed takeover from FTX, the company cut ties with him.

FTX started negotiating a potential takeover of PlayUp in August of 2021, worth $450 million. Around the same time, Mintas requested to be appointed as the global CEO of the company, have a 100% increase in her salary to $1 million annually, a 15% stake in the business, and have Daniel Simic’s contract terminated.

Mintas started directly negotiating with FTX after PlayUp denied their requests. According to reports, Mintas made claims that caused the negotiation process to fall through. She said there is conflict within PlayUp’s management team.

PlayUp stated that Mintas threatened to damage the company’s reputation because she broke her employment agreement.

Mintas claimed that Simic was the reason the negotiations fell through because he made unreasonable and unethical demands. Mintas took matters to the Nevada US District Court and the court determined that Mintas was used as a scapegoat for the deal falling through.

PlayUp appealed to the US Ninth Circuit Court of Appeals. The judges are Patrick J. Bumatay, Raymond T. Chen, and Rick Clifton. The decision of the Nevada US District Court was upheld by the court.

The company didn’t prove the likelihood of success on the merits, which was the main reason why the court upheld the district court decision. Judge Chen questioned if Mintas tried to damage PlayUp’s reputation.

The court did not address the fact that PlayUp would be worse off than Mintas if the injunction was denied, according to Michael Popach, the legal representative for PlayUp.

There is no reason for an injunction because the deal with FTX fell through and there was no danger of Mintas interfering.

If PlayUp proved that it was right on the merits of the case, it would be hit more severely from not receiving an injunction.

While concluding the judgment, the court stated that it did not make the ruling based on the merits of the case and that the lower court acted properly. The conclusion said that neither party will prevail if the matter goes to trial.

Summary:

The US Ninth Circuit Court of Appeals has upheld the temporary restraining order that PlayUp imposed on former CEO Laila Mintas. Mintas was appointed as the CEO of PlayUP in 2020 but after a failed takeover from FTX, PlayUp cut ties with Mintas. Mintas requested to be appointed as the global CEO of the company, have a 100% increase in her salary to $1 million annually.