The business world is cut-throat when you’re talking millions. The UFC’s former developers of video games, THQ has now come forward with a lawsuit against their former client, as well as their competitor’s over at EA Sports.
Why? According to sources involved, THQ was up against unfair advantages in negotiations of the termination of their licensing. Shortly after THQ had shared information with EA Sports for a possible buyout, the belief is they had became very interested in the UFC licensing, as they saw the $20 million value of the franchise. Further, the allegations by THQ is that the UFC was given access to their finances by EA, giving them a leg up in negotiating the termination of their licensing deal during their financial crisis.
THQ would ultimately settle for $10 million with Zuffa LLC. in order to terminate their license as they closed in on bankruptcy. The main argument of the lawsuit is a tough one. They would require a court to reverse the authorized settlement, as they would need to prove that they were in fact trading insider information on the finances of THQ at the time.