Sega of America has launched a $2.2 million lawsuit against one of America’s biggest superstore chains K-Mart. The dispute arises from various inconsistencies in K-Mart’s returns, following the many reductions in the price of the Dreamcast.
"From last summer to today we've been negotiating with K-Mart to try to get some of this money returned to Sega," said Charles Bellfield, VP of corporate marketing of Sega. "This is all for product that has already been shipped to K-Mart and that they have already sold to their consumers. They've already received the money for these products from their customers but are refusing to pay Sega money that is contractually obliged to us.”
K-Mart sales accounted for less than 5% of all American Dreamcast sales and Sega stopped shipping to the company last summer when the dispute arose. Bellfield alleges that K-Mart continually applied deductions and credits to invoices to reduce payments to Sega.
Bellfield was bullish about the expected outcome of the case, which will be heard in San Francisco this summer. “Sega expects to get paid,” he said.
"From last summer to today we've been negotiating with K-Mart to try to get some of this money returned to Sega," said Charles Bellfield, VP of corporate marketing of Sega. "This is all for product that has already been shipped to K-Mart and that they have already sold to their consumers. They've already received the money for these products from their customers but are refusing to pay Sega money that is contractually obliged to us.”
K-Mart sales accounted for less than 5% of all American Dreamcast sales and Sega stopped shipping to the company last summer when the dispute arose. Bellfield alleges that K-Mart continually applied deductions and credits to invoices to reduce payments to Sega.
Bellfield was bullish about the expected outcome of the case, which will be heard in San Francisco this summer. “Sega expects to get paid,” he said.
Companies:
SEGA
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