THQ files suit against EA and UFC parent company
by Steve Watts, shacknews.com, Oct 10, 2013 8:30AM PDT
THQ may be out as a publisher, but what remains of the company is still working through bits of legal action. It has filed suit against both Electronic Arts and UFC parent company Zuffa, claiming that the two worked together to end THQ's agreement with UFC and transfer it to EA.
The complaint (via Polygon) was filed in the US District Court in Delaware on October 4. When THQ explored the possibility of sale to a larger publisher, EA was among the options and began talks with the struggling publisher in early December 2011. Late that month, Zuffa sent a letter signaling it wanted to terminate the agreement due to THQ's financial difficulties.
THQ alleges that the termination was due to EA. According to the suit, EA passed information from its talks on to Zuffa, including confidential financial information that was only disclosed in the buyout discussions, in the interest of acquiring the UFC license for itself. THQ subsequently did transfer the UFC license in June 2012.
Though Zuffa paid $10 million to terminate the agreement, THQ claims the license was worth $20 million or more at the time. THQ is seeking $10 million in damages to make up the difference, or even the nullification of the transfer. It is also asking the court to share profits from its own UFC games, and to disallow Zuffa's own bankruptcy claims against THQ totaling $1.96 million. An EA spokesperson said the claims are "without merit."