Friday, January 29, 2010

MumboJumbo wins $4.6m lawsuit against PopCap

MumboJumbo wins $4.6m lawsuit against PopCap

Casual game maker PopCap Games has lost a lawsuit against its now former distribution partner MumboJumbo, costing the company $4.6 million in damages, on top of attorney fees.

Mumbo had reached an agreement in 2006 with the company to produce, distribute and sell select PopCap games. However, PopCap went behind its partners back, selling and marketing the games on its own, going so far as to "employ a calculated use of false and misleading statements in order to sour that business relationship", as uncovered through internal e-mails.

Mumbo's lawyers noted a key retailer relationship was severed with the company as a result of the actions.

PopCap has been found guilty on fraud, tortious interference and breach of contract.

“The law allows you to do plenty of things to be successful in business,” says attorney Marty Rose of Dallas-based Rose•Walker, who represents MumboJumbo. “However, it does not allow you to commit fraud or interfere with a company’s business relationships. The jury’s verdict is a clear signal that this type of business conduct is not going to be tolerated.”

“We were brought into this case at the last minute,” says attorney Mike Richardson, also of Rose•Walker. “And it is incredibly rewarding to be able to help a client in need.”

“The jury has spoken and demanded that businesses play by the rules,” says Rose•Walker attorney Ross Cunningham.

Source:Press release

Section:PC Games

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