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SouthPeak, Paradox Resolve Distribution Dispute

Publisher SouthPeak and PC game company Paradox Interactive have settled their legal dispute over a distribution deal gone sour, in what they describe as an "amicable resolution."

Leigh Alexander, Contributor

April 1, 2010

1 Min Read
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A legal dispute between PC developer Paradox Interactive and publisher SouthPeak over a distribution deal gone sour has been resolved, SouthPeak announced today. SouthPeak says the two companies reached an "amicable resolution," and a settlement under the terms of which it will pay Paradox the outstanding payments at the center of the dispute. Hearts of Iron developer Paradox filed a lawsuit against the My Baby and Two Worlds publisher last month, alleging it was owed $585,382 in unpaid revenues from the distribution of its games. Paradox also alleged that SouthPeak was in a position to reclaim unsold Paradox games from retailers even if they could still be sold, a move by which it said it would be "irreparably harmed." Paradox asserted at the time that SouthPeak, which reported a $2.6 million loss in its most recent fiscal quarter and recently extended its credit line to $8 million borrowed, was insolvent. "SouthPeak has demonstrated its financial stability and both parties are delighted to have established a mutually agreeable resolution to the dispute," says SouthPeak in today's statement. "As a result, the arbitration and lawsuit will be dismissed." Paradox CEO Fredrik Wester also commented on the settlement: "SouthPeak’s ability to settle this matter swiftly is a tribute to their professionalism and their sound financial integrity," he said. "We wish SouthPeak much future success."

About the Author

Leigh Alexander

Contributor

Leigh Alexander is Editor At Large for Gamasutra and the site's former News Director. Her work has appeared in the Los Angeles Times, Variety, Slate, Paste, Kill Screen, GamePro and numerous other publications. She also blogs regularly about gaming and internet culture at her Sexy Videogameland site. [NOTE: Edited 10/02/2014, this feature-linked bio was outdated.]

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