Blimey, "City National Bank says in Superior Court that it was defrauded of $14 million by Konami Corp and Autumn Games, publishers of the Def Jam Rapstar video game" says a report in Court News.
Seriously, this is not looking good if, "City National claims Konami and Autumn Games lied to secure Autumn the credit line, assuring the bank that revenue from sales of the rap-themed karaoke game would cover the loans.But the bank claims it has yet to see a dime of $14 million in loans it extended to Autumn" proves to be true.
The court documents reveal that, "After the loan was approved, the bank says, Konami and Autumn made "baseless and unrealistic projections," that "Def Jam Rapstar" would ship 2.5 million units in its first year."
This didn't happen and, in fact, Autumn drew down some $13,987,003.15 of the $15 million line of credit. As of the filing however, the "defendants still have not paid CNB a single penny of the principal amount that is due, and they continue to insist that none of the proceeds from sales of the game are owed to CNB and/or available for repayment."
Source: Courthouse News