Adidas Suing THQ Over Contract Breach

Adidas has filed a lawsuit against THQ due to a breach of contract over the failed production of an Adidas game.

The lawsuit has been filed Multnomah County Circuit Court, Oregon, by Adidas who have stated that this breach has caused more than $10 million worth of damages. The game in question, which had a working title of MiCoach 24/7, was supposed to have released January 2012. An agreement for the product had been agreed back in December 2010.

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When THQ hit its huge financial troubles it informed Adidas that work could not continue on the title as the staff were laid off. The failure to bring this game to market is what has sparked the lawsuit. Adidas is also accusing THQ of not making available the game materials that have already been developed so they can be passed onto a developer of Adidas’ choice.

Adidas wants a jury trial set up for this lawsuit and is also requesting an injunction that stops THQ from selling the rights to the MiCoach game.

Source: OregonLive via VG247

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7 Comments

  1. Nice one Adidas – Nothing like kicking someone when they are down eh?

    Of course $10m worth of damages is nothing to be sniffed at, but i do wonder how that much could have been pumped into it only to have nothing come out the other end.

    • THQ should have officially cancelled the project. Adidas are trying to cement their place in fitness games and MiCoach could have been huge.

      Far enough THQ had troubles but that’s no reason not to follow the proper legal process.

      • Yeah, just makes me wonder about the communication between the two to be fair.

        I mean, what did adidas do? Chuck them a cool $10m & say “come back when you have a working game”? If I had put anywhere near that sort of investment into something, you would have to be convincing me daily (maybe even hourly??) that it was all going to work out.

        Basically, I just don’t see how either of them didn’t know that things were getting difficult, or that troubles would be ahead.

      • I think I’d have to side with Adidas here. THQ collects $10m and then at some point just lays off the staff for the game that they agreed to make? They clearly spent that money on another project instead of reserving that money to fulfill their contract with Adidas.
        I also don’t think that Adidas should have been on THQ’s back 24/7 to see how things are doing. They are a sports company and $10m is probably nothing more like a local ad campaign for them and they put their trust in a (former) top publisher.

  2. i’m finding it hard to muster any sympathy for thq.

    admittedly i’m not putting a great deal of effort into it, but still.

  3. Final nail….

  4. Serious lack of communication here. I guess no-one in the real world will ever really know what happened but THQ is clearly a very ill company. I just hope they get their house in order.

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