Turbine Accuses Atari of "Shaking Down" Dungeons & Dragons Online, Sues for $30 Million in Damages

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TurbineEarlier this week, Turbine filed a complaint against Atari with the Supreme Court of the State of New York suing Turbine for "$30 million in losses occasioned by Atari's breach and wrongful conduct" as well as the termination of the publishing agreement for Dungeons & Dragons Online: Stormreach.
Atari is the publisher and distributor for Dungeons & Dragons Online: Stormreach, and the complaint states that Atari "has consistently breached its obligations, sought to take unfair advantage of Turbine and extract additional benefits, and acted in an unfair and bad faith manner."

The complaint essentially states that Atari has been (Turbine alleges) building up a false case to terminate its publishing agreement with Turbine and reclaim the Dungeons & Dragons license to publish a competing massively multiplayer online game, while continuing to sign contract amendments relating to Dungeons & Dragons Online: Stormreach and accepting large payments without delivering on Atari's own responsibilities under the contract.

"Turbine, in good faith, paid Atari an advance of hundreds of thousands of dollars in future royalties." all while (Turbine alleges) Atari was working on a basis to terminate the contract with Turbine. Turbine claims that Atari conducted a false royalty audit that claims that Turbine is withholding information and royalties from Atari. Turbine filed in its court documents that it believes this audit is being used as an excuse to avoid Atari's contractual responsibilities. Turbine says it has delivered on its end of the contract and cooperated fully with the audit.

Allegedly, Turbine wanted to convert Dungeons & Dragons Online: Stormreach to a Free-To-Play game (as was recently announced) for more than a year, but was unable to do so because Atari refused to cooperate. Turbine was only able to proceed with its plans after signing a contractual amendment and paying "hundreds of thousands of dollars to Atari." Turbine claims to have lost enormous revenues due to that delay and that Atari was acting in bad faith.

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This page contains a single entry by Editor published on August 28, 2009 3:15 PM.

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