Former Harmonix Shareholders Suing Viacom for Millions of Dollars

Harmonix is accusing Viacom of purposely cheating information technology retired of bonuses in past manipulating deals to keep off Rock Band profits as low as possible.

A group of former Harmonix shareowner, including founders Alex Rigopulos and Eran Egozy, have come together to action the studio's current owner, Viacom, for millions of dollars in owed bonuses.

At the center of the causa is Harmonix's acquisition by Viacom in 2006. Viacom paid $175 million for the developer, with potential millions more to follow in carrying out-related payouts. For every dollar sign of profit the Rock Banding series made in 2007, above a threshold of $32 million, Viacom would have to pay $3.50. A standardised deal existed for 2008, only with a threshold of $45 cardinal.

Viacom has paid kayoed $150 million for 2007, but has hitherto to pay anything for 2008. Indeed, in a recent financial filing, it suggested that it might still be owed part of the money cover from Harmonix, although information technology didn't expand upon why. The former shareholders criminate Viacom of deliberately manipulating payments and lucre for its own benefit in violation of the "implied covenant of good faith and fair dealing" that was an inherent break u of the deal between the two companies.

The former shareholders allege, e.g., that rather than reduce EA's distribution fees when it had the chance to in 2008, Viacom instead unbroken the price the same – thus not making the games any to a greater extent lucrative – and negotiated benefits for itself. The shareholders say that Viacom elicited millions of dollars of advertising revenue from EA in 2008, then reduced the Price in 2009, after the payout period was over.

In terms of damages, the suit suggests that an conquer sum would be the money unpaid to the former shareholders from the as-sooner or later unpaid 2008 deal, and the money that Viacom received from Ea from the advertising deal and some accelerated cash payments.

A "resolution accountant" is currently hard the perfect appreciate of these bonuses and information technology's persuasion that terms of the deal mean that the total bequeath be unaffected by the decline in the medicine game genre in new long time. Also enclosed in the suit is a sum of $13 billion dollars, which has been held in escrow since the meter of the Harmonix's acquisition, which the shareholders believe they are titled to.

If Viacom really does trust information technology has a guinea pig for claiming back some of the money information technology has paid the Harmonix shareholders, then IT seems likely that IT will single file a countersuit not far.

Seed: Gamasutra

https://www.escapistmagazine.com/former-harmonix-shareholders-suing-viacom-for-millions-of-dollars/

Source: https://www.escapistmagazine.com/former-harmonix-shareholders-suing-viacom-for-millions-of-dollars/