Infogrames Sued For 'Looting' GT Interactive
1:56 PM | Toby Allen | Comment on this story
French publisher Infogrames isn't exactly a household name for Mac gamers, but the company's recently-purchased subsidiary GT Interactive -- which owns MacSoft -- should sound familiar. Infogrames acquired GT earlier this Summer in a string of purchases to consolidate their games offerings.
Now it seems U.S. shareholders are objecting to the way Infogrames is splitting up the spoils of their purchase, and blaming the company for a drop in the stock price of GT Interactive. An article on FGNOnline relates a story published in the UK Times which details the suit:
Industry: Infogrames is being sued by investors in the U.S. for allegedly "looting" GT Interactive after taking control of the company in a $135 million takeover deal. The financial health of the company formerly known as GT Interactive should be of interest to all Mac gamers, as this company not only owns MacSoft but is the publisher of the Unreal and Unreal Tournament series.
The allegation was made by two investors at Infogrames Inc (formally GT Interactive). Shareholders allege that Infogrames Inc's directors gave the company's inventory of videogames, its distribution rights and royalties to its controlling French shareholder, while leaving U.S. shareholders to pay for new games development.
"Predictably, Wall Street has watched the looting of Infogrames's business and has reacted accordingly," the lawsuit alleges. Shareholders want Infogrames to pay them damages and their legal fees.
Investors Sue Infogrames on FGNOnline
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