Randy Pitchford

Buckle up, everyone, because this is going to be a real doozy of a news post.

There are two lawsuits recently filed between Gearbox CEO Randy Pitchford and the former general counsel for Gearbox. They're both suing each other, both claiming the other were in violation of their legal responsibilities to the company. The lawsuit against Pitchford from the former Gearbox lawyer Wade Callender says that Pitchford received a secret $12 million bonus from Take-Two Interactive.

Callender's lawsuit, filed December 21, 2018, also says that Pitchford is in violation of some contracts that involve Gearbox and a "separate real estate company" that both of them owned. Gearbox says that these accusations are "absurd" in a brief statement released today by a Gearbox spokesperson.

"The allegations made by a disgruntled former employee are absurd, with no basis in reality or law," said a Gearbox spokesperson in a statement to Kotaku. "We look forward to addressing this meritless lawsuit in court and have no further comment at this time."
Callender's lawsuit against Pitchford came about a month after Gearbox sued him. That particular lawsuit claims that Callender is guilty of fraud and breach of fiduciary duty. Gearbox says that Callender borrowed money from Gearbox in order to pay for a home loan and tuition that he did not fully pay back. Gearbox also alleges that Callender made a number of "unapproved, wholly personal expenses." These personal expenses are said to include family vacations, gun club memberships, the purchase of firearm accessories, and "trying to get six-pack abs." Gearbox goes on to say that Callender destroyed evidence of the home loan agreement that he had made with them.

Callender's lawsuit against Randy Pitchford says that Pitchford made a deal back in 2016 to receive a secret "Executive Bonus" of $12 million that would be paid to Pitchford under an entity called "Pitchford Entertainment Media Magic, LLC." The lawsuit says that this $12 million was an advance on "royalties that would otherwise go to Gearbox's staff" for use in funding Borderlands development.

This is where things go a bit further off the rails.

Callender's lawsuit goes on to say that in 2014 Randy Pitchford left a USB drive in a Dallas, Texas restaurant that contained sensitive corporate data for Gearbox and its partners. These partners include 2K Games, Sega, Sony, Microsoft, and more. The lawsuit continues on to claim:

"Upon information and belief, Randy Pitchford’s USB drive also contained Randy Pitchford’s personal collection of ‘underage’ pornography."
Callender's lawsuit doesn't stop there. He continues on to claim:

(Pitchford held parties where) "adult men have reportedly exposed themselves to minors, to the amusement of Randy Pitchford."
If you want, you can read both lawsuits in their entirety. This news comes courtesy of a report made by Jason Schreier at Kotaku. In Schreier's own words, "you can say anything in a lawsuit." That is something to keep in mind when reading through the allegations made by both parties.

Gearbox suit against Callender by on Scribd

Gearbox lawsuit by on Scribd