The lights are on
THQ might be a shell of its former publishing glory, but the corporation still exists. It's sole purpose is to see the remaining assets divested and as many creditors repaid as possible through the remainder of the bankruptcy.
That entity has filed a lawsuit against EA and UFC owner Zuffa, Inc. over the settlement of THQ's licensing agreement. The suit alleges that EA had intimate knowledge of THQ's financial position due to exploration of a buyout.
As we know, EA declined to purchase THQ, but not before receiving proprietary financial information. The THQ suit alleges that EA then conspired with Zuffa to free the license, which EA would then offer more for.
Zuffa paid THQ $10 million to settle the license ($1.9 million of which is still unpaid with the former sitting on the creditor list). THQ alleges tortious interference, claiming that EA solicited Zuffa and enabled a lower-than-reasonable settlement fee.
THQ also accuses EA and Zuffa of fraud, demanding that the license (or equivalent value plus interest, which THQ deems to be approximately $20 million) be restored to THQ, that Zuffa's claim as a creditor be annulled, and that EA act as trustee of the license. The latter would mean that EA's profits from its own UFC game (coming in 2014) would belong to THQ.
We contacted EA for comment. "We believe these claims are without merit," a representative told us.
[Source: United States District Court For The District of Delaware via Polygon]
Our TakeTHQ will have to prove collusion in order for its suit to find purchase. It seems late to be pursuing this action, and it leaves me wondering if those left running the company during its death throes have recently found out something that can be used as legitimate evidence.
Email the author Mike Futter, or follow on Google+, Twitter, and Game Informer.
Never underestimate zombies.
Update: Activision sues THQ for deploying 'Martyrdom' perk without permission.
I doubt those who are taking care of the final business of THQ would be stupid enough to attempt to make an accusation, with lawsuit, like this without something to back it up. Especially, as Mr. Futter said, so long after everything was supposedly settled as much as it could be.
Though it may just be part of me hoping that THQ could get some kind of a win after so many losses.
This strikes me as being ridiculous. THQ was on its way out whether EA had the UFC license or not, they were making no money off the license, and frankly unless if this exploration of a buyout happened more than a year prior to THQ dropping the license, I see no issue with EA seeking the license, as it was pretty obvious THQ was going under for more than a year before they finally were pulled off life support.
I feel bad for THQ. If they're doing this, I feel like they still owe creditors a lot of money and don't have it. Then again, what they're saying about EA makes sense if they were looking at a buyout at some point. One things for sure - if EA has to settle ANOTHER suit after the whole NCAA mess, you can bet they'll shut down another small studio under their umbrella to cut losses.
If I was employed at one of the studios currently pumping out their awful mobile games (like the recent micro transaction-loaded Dungeon Keeper travesty), I'd start looking for another job... just in case.
intresting , sounds actually possible tho , but ... a bit late too , altho even if they can't be what they once were at least let them be clean of debt sooner :/
So will there be a UFC game? Will EA still push out a hard hitting game or slack of because the lost in profits over it? Seems like the real person going to be impacted by this is going to be the game itself. hope it doesn't turn into a bar chick at 3am
Update Note: Activision sues THQ for deploying 'Martyrdom' perk without permission...