Eko Asks Court to Freeze Quibi’s Assets, Seeks $96.5M Payout





After calling Quibi out for using bankruptcy to try and get out of the lawsuit, the interactive-video firm Eko is demanding a payout of $96.5 million from the ex-streaming service. Eko filed a lawsuit earlier this spring accusing Quibi of stealing technology, including the Turnstyle feature which allows users to flip their phone from vertical to horizontal and have the video adjust to fit the screen orientation. A judge dismissed nine of the claims but left the core complaint in place.

It sounds like Eko is determined to get paid, and even went so far as to file an application to a California federal district court, asking for a temporary restraining order “preserving the status quo by freezing Defendant Quibi Holdings, LLC’s (‘Quibi’) bank accounts and assets related to the intellectual property at issue in this case,” Variety reports.

Last week, Quibi said that it would return $350 million of its cash to investors including Disney, NBCUniversal and WarnerMedia. The streamer was then planning to hold onto about $60 million to cover the costs of selling off assets and essentially closing up shop on or around Dec. 1. But Eko says that plan will leave Quibi with funds “insufficient to cover the amount of a potential judgment for Eko.”

Now Eko’s panicking that Quibi will sell off certain features, including the turnstyle technology Eko is claiming as its own, saying Quibi “refused to expressly confirm that it would preserve its assets” for paying off the case. “Quibi stated only that it would ‘comply with its legal obligations related to the winding down of its business, including Quibi’s obligations under the Delaware Limited Liability Company Act.’”

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