In the recent court ruling, the presiding judge concluded that while PlayUp failed to provide enough evidence of trade secret law or confidentiality agreement violations by Mintas, they acknowledged the potential for “irreparable harm” to the business. Mintas, on the other hand, strongly denies the allegations and intends to address them in court. This development followed the collapse of negotiations to sell PlayUp’s business to cryptocurrency exchange FTX.
PlayUp had hired Mintas to lead its US division in July 2020, with approvals obtained to launch in Colorado and New Jersey. As part of her role, Mintas agreed to an array of clauses, including confidentiality, non-competition, non-solicitation, and non-disparagement. These clauses prohibited Mintas from sharing confidential information about PlayUp, except in the course of her duties as US CEO, and from engaging in any conduct or making any statements that could harm the company’s reputation or commercial interests.
Despite opening discussions to extend her contract, negotiations between Mintas and PlayUp fell apart. The operator claims that Mintas violated her contract by contacting Sam Bankman-Fried of FTX, which was in talks to acquire PlayUp’s Australian business, and made statements that allegedly contributed to the collapse of the deal. PlayUp also alleges that Mintas threatened to damage the company’s reputation with gaming regulators, trading partners, and customers.
Consequently, PlayUp filed a lawsuit against Mintas in November, raising allegations of breach of contract, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, and violation of the Nevada Uniform Trade Secrets Act, among other similar laws. To prevent further harm, PlayUp sought an emergency restraining order. The judge found insufficient proof of trade secret or confidentiality agreement violations, but believed Mintas may have disparaged the company and breached the non-compete clause through private negotiations with FTX. Due to the risk of irreparable harm based on Mintas’ statements, the judge issued a temporary restraining order.
- Mintas is restrained from engaging in any conduct or making statements that disparage, portray in a negative light, or otherwise harm the reputation or commercial interests of PlayUp.
