Take-Two Sues 3D Realms and Midway Is Sued By Investors
With developer 3D Realms going under it is no surprise that Take-Two is now suing the developer for failure to deliever. At the same time failing publisher Midway is being sued by several of it's investors. The following story comes from Bloomberg. Check it out:
Both Midway's and 3D Realms case are still in progress and we will bring you any updates as they develop.
Take-Two Sues Apogee Over ‘Duke Nukem’ Game Sequel
Take-Two Interactive Software Inc., the maker of the “Grand Theft Auto” video games, sued Apogee Software Ltd.’s 3D Realms over the failed development of a sequel to the “Duke Nukem” game called “Duke Nukem Forever.”
Take-Two, owner of the publishing rights to the game, said Apogee breached an agreement to design the latest installment of Duke Nukem, a game in which the player “shoots” enemies. The new version has been under development since 1997, the company said yesterday in a complaint in a state court in Manhattan.
3D Realms, which was based in Garland, Texas, never produced the game and instead closed its studio on May 6, terminated development of the game and fired employees who had been involved in the Duke Nukem project, Take-Two said.
“Apogee continually delayed the completion date for the Duke Nukem Forever,” Take-Two said in the complaint. “Apogee repeatedly assured Take-Two and the video-gaming community that it was diligently working toward competing development of the PC Version of the Duke Nukem Forever.”
Take-Two said in 2000 it had an agreement with Apogee and paid $12 million for publishing rights to the forthcoming game. In 2007, the two companies entered into a second agreement.
The case is Take-Two Interactive Software, Inc. v. Apogee Software Ltd. 601457/2009, New York State Supreme Court, New York County (Manhattan).
Redstone Sued by Midway Games Creditors Over Sale of 87% Stake
Sumner Redstone and his National Amusements Inc. holding company were sued by Midway Games Inc. creditors over claims the video-game maker was hurt when Redstone sold his 87 percent stake in it for $100,000.
The November transaction generated more than $700 million in tax losses for Redstone, enabling him and his company to obtain a “massive” tax refund, the official committee of unsecured Midway creditors said in a complaint filed April 12 in U.S. Bankruptcy Court in Wilmington, Delaware.
“The transaction caused Midway irretrievably to lose the ability to take advantage of its valuable accumulated net operating losses and other tax assets,” the creditors committee said.
Midway Games, the creator of the Mortal Kombat video-game series, sought bankruptcy protection from creditors in February, saying the change in ownership accelerated buyback requirements. The creditors accuse Redstone, the chairman of CBS Corp. and Viacom Inc., of fraudulent transfer and breach of fiduciary duty, and they seek unspecified damages.
“This suit is completely without merit,” Brandy Bergman, a spokeswoman for National Amusements, said in an e-mailed statement. “The conduct of Mr. Redstone and NAI was entirely proper and we strongly disagree with any suggestion that Mr. Redstone or NAI breached any fiduciary duties.”
The case is In re Midway Games Inc., 09-10465, U.S. Bankruptcy Court, District of Delaware (Wilmington.)
Take-Two Interactive Software Inc., the maker of the “Grand Theft Auto” video games, sued Apogee Software Ltd.’s 3D Realms over the failed development of a sequel to the “Duke Nukem” game called “Duke Nukem Forever.”
Take-Two, owner of the publishing rights to the game, said Apogee breached an agreement to design the latest installment of Duke Nukem, a game in which the player “shoots” enemies. The new version has been under development since 1997, the company said yesterday in a complaint in a state court in Manhattan.
3D Realms, which was based in Garland, Texas, never produced the game and instead closed its studio on May 6, terminated development of the game and fired employees who had been involved in the Duke Nukem project, Take-Two said.
“Apogee continually delayed the completion date for the Duke Nukem Forever,” Take-Two said in the complaint. “Apogee repeatedly assured Take-Two and the video-gaming community that it was diligently working toward competing development of the PC Version of the Duke Nukem Forever.”
Take-Two said in 2000 it had an agreement with Apogee and paid $12 million for publishing rights to the forthcoming game. In 2007, the two companies entered into a second agreement.
The case is Take-Two Interactive Software, Inc. v. Apogee Software Ltd. 601457/2009, New York State Supreme Court, New York County (Manhattan).
Redstone Sued by Midway Games Creditors Over Sale of 87% Stake
Sumner Redstone and his National Amusements Inc. holding company were sued by Midway Games Inc. creditors over claims the video-game maker was hurt when Redstone sold his 87 percent stake in it for $100,000.
The November transaction generated more than $700 million in tax losses for Redstone, enabling him and his company to obtain a “massive” tax refund, the official committee of unsecured Midway creditors said in a complaint filed April 12 in U.S. Bankruptcy Court in Wilmington, Delaware.
“The transaction caused Midway irretrievably to lose the ability to take advantage of its valuable accumulated net operating losses and other tax assets,” the creditors committee said.
Midway Games, the creator of the Mortal Kombat video-game series, sought bankruptcy protection from creditors in February, saying the change in ownership accelerated buyback requirements. The creditors accuse Redstone, the chairman of CBS Corp. and Viacom Inc., of fraudulent transfer and breach of fiduciary duty, and they seek unspecified damages.
“This suit is completely without merit,” Brandy Bergman, a spokeswoman for National Amusements, said in an e-mailed statement. “The conduct of Mr. Redstone and NAI was entirely proper and we strongly disagree with any suggestion that Mr. Redstone or NAI breached any fiduciary duties.”
The case is In re Midway Games Inc., 09-10465, U.S. Bankruptcy Court, District of Delaware (Wilmington.)
Both Midway's and 3D Realms case are still in progress and we will bring you any updates as they develop.