Federal Court Order Clears Path for Allied’s Amended Claims to Proceed

--Allied Gaming & Entertainment Inc. Provides Shareholder Update on Federal Court Order in Ongoing Litigation

NEW YORK--(BUSINESS WIRE)--Allied Gaming & Entertainment Inc. (NASDAQ: AGAE) (the “Company” or “Allied”) today provided an update to shareholders regarding a January 5, 2026 order issued by the United States District Court for the Central District of California in the Company’s litigation against Knighted Pastures, LLC and related parties.

In its order, the Court granted Allied’s unopposed motion for leave to amend its complaint, permitting the Company to proceed with its amended pleadings, and denied as moot all pending motions to dismiss previously filed by the defendants.

The Court also granted Allied’s unopposed motion to modify the previously issued preliminary injunction. Specifically, the Court vacated those provisions of the injunction that had temporarily restricted the holding of a board election and required compliance with certain external orders, noting that the defendants had ended their proxy contest and that the underlying purpose of those provisions had therefore been served. All remaining provisions of the preliminary injunction remain in effect until further order of the Court.

Allied views this order as an important procedural development that clarifies the litigation posture, streamlines the issues before the Court, and allows the case to proceed efficiently on the merits.

The Company continues to believe that its actions have been, and remain, in the best interests of all shareholders. Allied will continue to pursue this matter diligently while maintaining its focus on executing its business strategy, strengthening its operations, and creating long-term shareholder value.

The Company does not intend to comment further on specific litigation matters beyond public filings and material disclosures.

About Allied Gaming & Entertainment Inc.

Allied Gaming & Entertainment Inc. (NASDAQ: AGAE) is a global experiential entertainment company focused on creating world-class live experiences, content, and interactive services across gaming, esports, and entertainment. The Company owns and operates a portfolio of premier assets and brands designed to connect fans, players, and communities worldwide.