PopCap stung by $4.6m lawsuit loss

PopCap stung by $4.6m lawsuit loss
Will Freeman

By Will Freeman

January 26th 2010 at 2:12PM

MumboJumbo awarded payout after court rules it suffered breech of contract

As detailed in a statement released today by Dallas-based publisher MumboJumbo, the casual specialist has won a legal battle against industry giant PopCap that will see the former awarded some $4.6 million in damages.

The payout comes after PopCap were found to have sold games in breech of a contract held with MumboJumbo, which created the Luxor and Midnight Mysteries titles.

As former partners, in 2006 MumboJumbo and Peggle company PopCap reached an agreement that was designed to enable MumboJumbo to produce, distribute and sell certain PopCap games in North America.

However, according to the findings of the 193rd Civil District Court in Dallas County, Texas, recent activity when PopCap marketed and sold games without MumboJumbo was in breech of the agreement.

“The law allows you to do plenty of things to be successful in business,” said 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.”

Full deails on this story can be found on Casualgaming.biz