Allied Gaming & Entertainment gives update on Knighted Pastures litigation

Allied Gaming & Entertainment provided an update regarding its litigation against Knighted Pastures, Roy Choi, his mother Naomi Choi, and Yiu-Ting So, a long-time business associate of Choi. On August 12, the United States District Court for the Central District of California issued its full order on preliminary relief. In that order, the Court stated that “Allied has demonstrated it is reasonably likely to establish the Knighted Parties formed a group with Naomi Choi and Yiu-Ting So, under Section 13(d), and succeed on the merits of its claims.” Based on the findings reflected in the Court’s order, the company’s board of directors has made a preliminary determination that the Knighted Group, including Knighted and Roy Choi, triggered the company’s shareholder rights plan, which was adopted and announced on February 9, 2024. In response to inquiries and requests from multiple shareholders of the company regarding the implications of the Court’s order and the rights plan, the board of directors currently intends to include a proposal at the next annual meeting seeking stockholder approval to confirm and ratify the board’s preliminary determination that Knighted and Roy Choi triggered the rights plan and authorize the board of directors to determine and implement any appropriate actions or mechanics related to the enforcement of the rights plan. The board’s determination is preliminary and will fully consider and take into account the views of shareholders and relevant professional advisors. The board ultimately may not include a proposal at the annual meeting regarding the rights plan.