Earlier today, Gamasutra reported that Harmonix co-founders Alex Rigopulos and Eran Egozy along with other ex-shareholders, has filed a lawsuit against Viacom.The shareholder suit alleges that Viacom attempted to manipulate Harmonix’s earn-out payments by negotiating a deal with EA that benefited Viacom instead of Harmonix. Specifically, the shareholder group claims that Viacom ignored the opportunity to lower EA’s distribution cost — in effect raising potential Rock Band profits — as part of a deal to continue distribution. Instead, the company allegedly made a deal that would see EA buy millions in advertising from MTV, thus benefiting its parent company, Viacom. The report says that when Viacom acquired Harmonix, shareholders would receive 3.5 times any gross profit of the Rock Band franchise over $32 million in 2007 and apparently didn’t have a cap of any kind. The Rock Band series last year surpassed the $1 Billion total sales in North America alone.
Harmonix has yet to comment on this situation.
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