MumboJumbo Files New Motion Against PopCap In Light Of Acquisition

Casual game publisher MumboJumbo has filed new court motions against gaming giant PopCap, to ensure that a settlement reached last year is paid, even if PopCap is bought. Just over a year ago, MumboJumbo won a court case against PopCap, after a jury found PopCap liable for fraud, tortious interference, and breach of contract with its former business partner. The two companies signed a game retail distribution agreement in July 2006, in which Dallas-based MumboJumbo was meant to provide sales and distribution services for PopCap and its games. That deal eventually went sour, with PopCap suing MumboJumbo for payments allegedly owed under the agreement, and MumboJumbo countersuing. MumboJumbo was eventually awarded $7.3 million in total damages and fees, although both companies appealed the court's decision, with PopCap noting, "PopCap continues to believe that it did nothing wrong in this case, and will vigorously pursue its claims and defend itself through the appeals process." With reports last week that Electronic Arts are in discussions to acquire PopCap, MumboJumbo is now looking to make sure it receives its multimillion dollar settlement whether PopCap is sold or not. Attorney Martin Rose of Rose Walker, who is representing MumboJumbo in the case, said, "We're hearing all sorts of talk about a sale or IPO of PopCap - and that's great - but the company has a responsibility to pay its debts." "We just want to do everything we can to make sure that what the jury and the court called for is carried out. Depending on the terms of the reported sale, there may be no assets left in PopCap to satisfy the full judgment, including attorney fees." A Dallas appellate court is currently considering appeals from both sides, as well as MumboJumbo's request for a new trial.