It’s Suing Season Folks

THQ might be a shell of its former publishing glory, but the corporation still exists. Its sole purpose is to see its remaining assets divested and as many creditors repaid as possible through the remainder of the bankruptcy. That entity has filed a lawsuit against EA and UFC owner Zuffa, Inc. over the settlement of THQ’s licensing agreement. The suit alleges that EA had intimate knowledge of THQ’s financial position due to exploration of a buyout.

As we know, EA declined to purchase THQ, but not before receiving proprietary financial information. The THQ suit alleges that EA then conspired with Zuffa to free the license, which EA would then offer more for.

Zuffa paid THQ $10 million to settle the license ($1.9 million of which is still unpaid with the former sitting on the creditor list). THQ alleges tortious interference, claiming that EA solicited Zuffa and enabled a lower-than-reasonable settlement fee.

THQ also accuses EA and Zuffa of fraud, demanding that the license (or equivalent value plus interest, which THQ deems to be approximately $20 million) be restored to THQ, that Zuffa’s claim as a creditor be annulled, and that EA act as trustee of the license. The latter would mean that EA’s profits from its own UFC game (coming in 2014) would belong to THQ.

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