FaZe Clan Must Pay for Director’s Legal Defense, Court Rules

Video gaming and eSports company FaZe Clan Inc. must pay to defend one of its board members against allegations that he conspired in a “corporate raid” to take control of the business, a Delaware court said.

Michael Stang Treschow is entitled to legal expenses connected to a California case because the allegations against him are “inextricably” linked to his role on the company’s board of directors, Delaware Court of Chancery Vice Chancellor Joseph Slights said Thursday in a bench ruling.

Treschow must also be fully reimbursed for what he spent on litigation to collect those expenses, known as “fees-on-fees,” Slights ...