LoL esports staff has officially reported that Cloud9 issued equity through its employee stock plan to seven players in violation of League rules over the course of six months. According to the reports, Cloud9 had failed to notify the League of its restricted stock units, not acknowledging in documentation provided to the League. Cloud9 is being fined $25,000 per player, totaling $175,000.

The organization will be required to pay current and former players - under independent representation, that take part in the restitution the owed stock grants and will negotiate with current players the extinction of existing stock grants.

The League reported:

"Cloud9 is directed to either pay certain amounts to players currently on Cloud9’s roster to cancel the existing RSU grants, and/or to substitute for the RSU grants through renegotiation of their current contracts.

Current players will be given the option to renegotiate their contracts if they choose to do so, with required certification if lawyer or agent representation.

The total fine based on the restitution options provided to Cloud9 ranges between approximately $330,000 and $605,000. The option to renegotiate player contracts alters the value. If the organization decides to renegotiate player contracts, the League expects the amouny to exceed $605,000.

The League does not consider those payments a “penalty”, given that Cloud9 is receiving services from players in exchange for those payments.

You can read the full statement by the LCS here: https://nexus.leagueoflegends.com/en-us/2019/11/lcs-competitive-ruling-cloud9/