Viacom Sue Rock Band Creators For $131 Million
That's a lot of money to cover up your own mistake, guys.
We Can Work It Out
Viacom has launched a massive lawsuit against Harmonix, the makers of Rock Band, claiming that the developer owes them a not-insignificant $131 million. Specifically, it's claiming that shareholders weren't entitled to a massive payout that Viacom forked out back in 2007 and they want it back. Now.
According to the lawsuit, when Viacom paid $150 million of performance-based payouts as a "preliminary calculation" in advance, it didn't realise that the market for folks jumping about playing plastic instruments could possibly slow down. When Rock Band 3 and the much-hyped Beatles Rock Band didn't do as well as expected, Viacom actually sold off Harmonix for a ridiculous $50 (gaining a massive tax break in the process).
The shareholders have actually launched their own legal action claiming that Viacom's payment wasn't enough. They suggest that Harmonix's then parent company was actually manipulating figures in an attempt to underpay, though this case has been running since last December.
Basically Viacom screwed up and over-estimated future sales; now they're trying to scrabble their money back in the only way they know how - through their lawyers. These things take time, of course, so the results of both of these lawsuits are way off in the distance. SPOnG shall keep an eye out and report back on any progress. Isn't it fun when companies lawyer up?
Source: Hollywood Reporter
According to the lawsuit, when Viacom paid $150 million of performance-based payouts as a "preliminary calculation" in advance, it didn't realise that the market for folks jumping about playing plastic instruments could possibly slow down. When Rock Band 3 and the much-hyped Beatles Rock Band didn't do as well as expected, Viacom actually sold off Harmonix for a ridiculous $50 (gaining a massive tax break in the process).
The shareholders have actually launched their own legal action claiming that Viacom's payment wasn't enough. They suggest that Harmonix's then parent company was actually manipulating figures in an attempt to underpay, though this case has been running since last December.
Basically Viacom screwed up and over-estimated future sales; now they're trying to scrabble their money back in the only way they know how - through their lawyers. These things take time, of course, so the results of both of these lawsuits are way off in the distance. SPOnG shall keep an eye out and report back on any progress. Isn't it fun when companies lawyer up?
Source: Hollywood Reporter
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