Motorsport Games Inc. Wins Summary Judgment in Delaware Court Case Against Innovate 2 Corp.

Motorsport Games Inc. wins summary judgment against Innovate 2 Corp. regarding a stock purchase agreement breach.

Quiver AI Summary

Motorsport Games Inc. announced that the U.S. District Court for Delaware granted a summary judgment in its favor regarding a legal case with Innovate 2 Corp. The court ruled in favor of Motorsport Games and its former executives on all counts, including a claim for breach of a stock purchase agreement. Following this ruling, the court has ordered both parties to provide a joint status report on further issues, including damages. Motorsport Games' CEO, Stephen Hood, expressed satisfaction with the judgment, stating it supports the company's good faith actions and allows them to focus on developing racing games like Le Mans Ultimate. The company is a developer and publisher of racing games and esports, known for its licensed products in motorsport series.

Potential Positives

• The U.S. District Court granted summary judgment in favor of Motorsport Games Inc. on all counts, providing a clear legal victory for the company.
• This judgment supports the company’s position that it and its former representatives acted in good faith during the contested matter.
• The ruling allows Motorsport Games to move forward and refocus on its core business of developing racing games, including its recent title, Le Mans Ultimate.
• The press release highlights the company's strong standing in the esports sector as the official partner for major racing events like the 24 Hours of Le Mans, enhancing its market presence.

Potential Negatives

• The press release notes ongoing legal challenges, with the Court ordering a joint status report regarding remaining issues, indicating that potential complications still exist despite the summary judgment in the company's favor.
• Despite the favorable judgment, the mention of the Company's damages on its counterclaim suggests financial uncertainty or liability that may impact future performance.
• The extensive disclosure about forward-looking statements emphasizes risks and uncertainties, which could create doubt among investors regarding the Company's future performance and ability to deliver on its promises.

FAQ

What was the recent court ruling for Motorsport Games?

The U.S. District Court granted summary judgment in favor of Motorsport Games and its former executives in a breach of contract case.

What claims did Motorsport Games prevail on?

Motorsport Games won on all counts regarding the breach of the stock purchase agreement with Innovate 2 Corp.

What does the court ruling mean for Motorsport Games?

The ruling allows Motorsport Games to focus on developing racing games and furthering its projects without ongoing litigation concerns.

What’s next for Motorsport Games after the court ruling?

The parties are required to submit a joint status report on March 12, 2025, concerning remaining issues in the case.

What are the main focuses of Motorsport Games?

Motorsport Games aims to create authentic racing game experiences and enhance its esports ecosystem, focusing on titles like Le Mans Ultimate.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$MSGM Hedge Fund Activity

We have seen 7 institutional investors add shares of $MSGM stock to their portfolio, and 4 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• HRT FINANCIAL LP removed 24,696 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $33,092
• CITADEL ADVISORS LLC added 21,835 shares (+inf%) to their portfolio in Q4 2024, for an estimated $29,258
• CONNECTIVE CAPITAL MANAGEMENT, LLC added 16,267 shares (+inf%) to their portfolio in Q4 2024, for an estimated $21,797
• RENAISSANCE TECHNOLOGIES LLC added 15,253 shares (+inf%) to their portfolio in Q4 2024, for an estimated $20,439
• MILLENNIUM MANAGEMENT LLC removed 11,108 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $14,884
• BANK OF AMERICA CORP /DE/ removed 9,347 shares (-99.9%) from their portfolio in Q4 2024, for an estimated $12,524
• MORGAN STANLEY added 2,300 shares (+inf%) to their portfolio in Q4 2024, for an estimated $3,082

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Full Release

MIAMI, March 07, 2025 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM), a racing game developer and publisher, announces that on February 26, 2025, the U.S. District Court for the District of Delaware (the “Court”) granted the summary judgment motion in favor of Motorsport Games Inc. (the “Company”) and the other defendants, the Company’s former Chief Executive Officer and Executive Chairman, the Company’s former Chief Financial Officer, and the Manager of Driven Lifestyle Group LLC., in the case titled

Innovate 2 Corp.

,

Motorsport Games Inc.

,

et al.

, No. 1:21-cv-165-SB.

The judgment entered by the Court held in favor of the Company and the other defendants on all counts and granted the Company summary judgment against Innovate 2 Corp. on the Company’s claim for breach of the stock purchase agreement entered into between the parties. The Court ordered the parties to submit a joint status report on March 12, 2025 regarding the remaining issues in the case, including Motorsport’s damages on its counterclaim.

Stephen Hood, President and Chief Executive Officer of Motorsport Games Inc. commented, “It is pleasing to receive this judgement from the Court in this matter. The Company and its former representatives have always maintained they acted in good faith and the Judge’s ruling supports this.”

“Our restructured Company is pleased to put this matter behind us and continue to focus on making great racing game experiences, such as Le Mans Ultimate, as we continue to build on its promising foundation.”

About Motorsport Games:

Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing

Le Mans Ultimate

in Early Access. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also serves as the official sim racing platform of Formula E, while also powering F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned

Le Mans Virtual Series

. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires.

For more information about Motorsport Games visit:

www.motorsportgames.com


.

Forward-Looking Statements

Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, the statements concerning making great racing game experiences, continuing to build on Le Mans Ultimate’s promising foundation and making racing games that are authentically close to reality. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation, the ability to make racing games that are authentically close to reality. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 312023, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure

Investors and others should note that we announce material financial information to our investors using our investor relations website (

ir.motorsportgames.com

), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Contacts:

Investors:

Investors@motorsportgames.com

Media:

PR@motorsportgames.com

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/c43e7202-89b2-434c-8e8a-356c9370e2e7

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.