Viacom Likes Money, Wants More Of It, Sues Harmonix
We kinda had a feeling this was coming, especially since the stockholders of Harmonix had filed suit against Viacom way back in December of last year for bonuses they believe they earned, but were never paid . And now, in what essentially amounts to a legal tit-for-tat, Viacom is now suing stockholders of Harmonix, for the sum of $131 million. While the amount does come as somewhat of a surprise, Viacom did state on their financial statements last year that “we believe that we are entitled to a refund of a substantial portion of amounts previously paid,” so I can’t say I’m completely surprised this is now public knowledge.
In Viacom’s lawsuit that has now been officially filed, they are seeking $131,827,980 of the original $149,770,149 payment to Harmonix. If we go back in time to February of last year, Viacom had originally gone public with the knowledge that they were coming after this money, and we analyzed Viacom’s reasoning for wanting their money back.
This is a pretty bold move from Viacom, as it’s fairly uncommon for corporations to go after bonuses that were actually paid, and then attempt to ask for the money back after things don’t pan out as expected. I can only speculate that this suit is going to be used as leverage against Harmonix’s litigation against Viacom, and that the whole thing will be settled out of court in arbitration, ending in a a wash for both companies.
You can review the entire legal document here.
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“as it’s fairly uncommon for corporations to go after bonuses that were actually paid, and then attempt to ask for the money back after things don’t pan out as expected.”
I realise this is actually true, but after Extra Credits and Infinity Ward, you’ll have a hard time convincing us.
lollegalsystem
Viacom = sore losers
Just nitpicking, but wouldn’t it be best to round up toward 132 million?
Does that mean I can go back to Capital Growth Mgt Ltd Partners and sue them for my mutual funds losing money over the last few years?
what a shame…
Viacom sucks ._.
While I can see justification for breech of contract against Viacom (bonus structures are usually part of the employment contracts), I can’t see how Viacom can retroactively attempt to take back bonuses paid as part of the contract they agreed to.
Either way, Viacom is using the legal system to get back at Harmonix, which in my eyes makes them pretty pathetic. I will be looking into Viacom’s productions more and seek to avoid consuming anything that they may garner some type of revenue from.
Oh look, Viacom being assholes. Not much new here *headdesk*
“Works on contingency? No. Money down!”
citric_bullets Reply:
September 21st, 2011 at 8:20 pm
I’m filing a class-action suit against the director on behalf of everyone who was cut from the play. I also play Mitch!
Just to clear things up, when you say “suing Harmonix,” do you actually mean “suing the people who currently produce Rock Band” or “counter-suing former Harmonix stockholders” (like I assume you mean).
NV_Mathemagician Reply:
September 21st, 2011 at 10:52 pm
It’s the stockholders
Sans Reply:
September 22nd, 2011 at 1:36 am
So this doesn’t affect Harmonix at all then?
RockBandAide Reply:
September 22nd, 2011 at 10:28 am
It’s not a counter suit, as they had stated their intentions about this before they sold Harmonix, but to be completely transparent, they are going after the “former Harmonix stockholders,” yes.
I’d pay to see this in court.
Judge: “So let me get this straight. Your client wants to reclaim a majority of the money that it paid out to the defendant, money the defendants were owed due to a breach of contract from your client’s part.”
Viacom lawyer: “please don’t word it so harshly, your honor.”