IndustryGamers today obtained a court filing detailing Paradox Interactive's lawsuit against SouthPeak Interactive. The suit, filed on March 8, indicates that a distribution agreement between the two companies, which saw SouthPeak act as a non-exclusive distributor of Paradox titles in North America, has gone awry. Ultimately, Paradox claims that SouthPeak has failed to make its payments and concerns over SouthPeak's "insolvency" are making matters worse. Paradox believes that SouthPeak owes the company "at least" $585,382.31.
"SouthPeak has failed to comply with its payment obligations even for game units which it previously reported to Paradox, and SouthPeak's executives have informed Paradox's executives that SouthPeak is currently financially unable to satisfy its payment obligations to Paradox under the Agreement," the filing stated.
With the payments not coming through, Paradox terminated the distribution agreement with SouthPeak on February 22 of this year. Then, in response to the termination notice, Paradox said that SouthPeak Chairman Terry Phillips "threatened that SouthPeak would insist that its retailers return any unsold inventory of Paradox games that were previously distributed." Paradox said that "there is no rational business reason for requesting such returns; it is contrary to the provisions in the Agreement for post-termination handling of product." Furthermore, Paradox said the company would be "irreparably harmed" by SouthPeak's request to retailers to return the unsold games.
Paradox is now looking for an injunction against SouthPeak to prevent them from getting games returned, and Paradox also is looking for a receiver to be appointed to collect the money that it believes SouthPeak owes the company.
SouthPeak's business has been in rough shape of late. The company lost $2.6 million over the holiday period and admitted that its ability to continue business is a "going concern." That said, more recently SouthPeak was able to extend its credit line, so we'll see what the future holds for the beleaguered publisher.
25 Comments
May 9, 2010
This is not saying that Gamestop is doing poorly, on the contrary, they are still doing amazingly well in the face of one of the biggest economic crisises since the great depression.
online fax
May 11, 2010
Twilight is similar to Frankenstein in that it is a turning point. Whereas Frankenstein began the trend toward the gentle monster, Twilight, I think, will begin the tread toward a more rightfully bestial monster...youtube to mp3
May 13, 2010
Twilight is similar to Frankenstein in that it is a turning point. Whereas Frankenstein began the trend toward the gentle monster, Twilight, I think, will begin the tread toward a more rightfully bestial monster...ecommerce website
May 16, 2010
Twilight is similar to Frankenstein in that it is a turning point. Whereas Frankenstein began the trend toward the gentle monster, Twilight, I think, will begin the tread toward a more rightfully bestial monster.
JumpLaunch Hosting Review
May 23, 2010
If it really takes off, why would people feel compelled to buy a new console?Fragrances for Women
May 23, 2010
Everyone has a right to own their own stuff and not be cheated off the money that someone else could make off them by copying their work. online fax
May 24, 2010
Twilight is similar to Frankenstein in that it is a turning point. Whereas Frankenstein began the trend toward the gentle monster, Twilight, I think, will begin the tread toward a more rightfully bestial monster...online fax
May 25, 2010
This is not saying that Gamestop is doing poorly, on the contrary, they are still doing amazingly well in the face of one of the biggest economic crisises since the great depression.online fax
May 26, 2010
This is not saying that Gamestop is doing poorly, on the contrary, they are still doing amazingly well in the face of one of the biggest economic crisises since the great depression.FastDomain Review
May 27, 2010
Twilight is similar to Frankenstein in that it is a turning point. Whereas Frankenstein began the trend toward the gentle monster, Twilight, I think, will begin the tread toward a more rightfully bestial monster.
id theft reviews
May 30, 2010
Their products include job board software that powers sites such as Startuply.com and IndustryGamers Jobs, and JobSyndicate, a job affiliate network.id theft reviews
May 30, 2010
The impact of blogging upon the mainstream media has also been acknowledged by governments. convert faxes
May 31, 2010
At CES 2009, Microsoft CEO Steve Ballmer announced the Windows 7 Beta, build 7000, had been made available for download to MSDN and TechNet subscribers in the format of an ISO image.online fax
June 9, 2010
Similarly, a clan tag is a prefix or suffix added to a name to identify that the gamer is in a clan. online fax
June 11, 2010
If I am to judge by current internet standards, then I fail at the art of the link-grabbing, punch-you-in-the-gut headline writing. credit protection reviews
June 11, 2010
Everyone has a right to own their own stuff and not be cheated off the money that someone else could make off them by copying their work.tv
June 13, 2010
Of course, Rockstar isn't an individual. When I speak of the company, what I speak of is the aggregate of how they choose to portray themselves, but let's not pretend like companies don't end up creating identities. Let's also not pretend that Rockstar hasn't embraced controversy, and too often responded in a way designed to inflame and irritate.free driver scanner
June 20, 2010
It provides a framework for ninja, knights, cowboys, princesses … Also, a such worlds are easy to understand, unlike reality. online driver scanner
June 21, 2010
It provides a framework for ninja, knights, cowboys, princesses … Also, a such worlds are easy to understand, unlike reality. online fax
June 27, 2010
There are many gamer communities around the world.online fax
June 28, 2010
In general, service businesses need to be as close to and as connected to their customers as possible. fax on internet
June 28, 2010
HUNT VALLEY, Md., June 28, 2010-- Game Trading Technologies, Inc. ("GTTI" or the "Company", OTC Bulletin Board: GMTD), a leading provider of comprehensive trading solutions for video game retailers, publishers, rental companies and consumers is pleased to announce that it has partnered with IndustryGamers.com to produce a "Pre-Owned Market" news and events channel for the rapidly expanding pre-owned video game software and hardware markets. online fax
July 5, 2010
PlayStation Move, which has controls that are quite similar to the Wii's. Sony clearly believes that a number of existing (or prospective) Wii owners will want a more high-definition experience to complement precise motion gaming, but Reggie doubts this strategy will work for Sony.Quality Directory
July 7, 2010
The PC MMOG genre is one of the fastest growing genres in the business, so a drop in position does not directly translate to a drop in subscribers.Directory
July 13, 2010
Analyze and inform you about all aspects of the business of games. IndustryGamers offers a free newsletter at www.industrygamers.com.online fax