Viacom wants $131m refund from Harmonix stockholders

Legal battle continues as Viacom files a new lawsuit against Rock Band shareholders

Viacom is suing former Harmonix shareholders, claiming they owe it a $131 million refund.

According documents published by Hollywood Reporter the company, which owned Rock Band developer Harmonix until earlier this year, paid around $150 million to Harmonix shareholders in performance related bonuses.

"This action arises from defendants' failure to return to Viacom their shares of a $131,827,980 contractual overpayment (the "Overpayment") to which they are not entitled."

Viacom claims that payment was the result of miscalculations, and the shareholders were only entitled to $18 million. The lawsuit, filed in Delaware federal court, also claims the defendants are in breach of the Merger Agreement.

The Harmonix shareholders actually filed a lawsuit against Viacom last year, claiming the company manipulated Rock Band figures to cap their earn-out payment, and say the original $150 million payment was insufficient.

Viacom acquired Harmonix in 2006. It sold Harmonix in February, and the studio was picked up by private investment group Colombus Nova.

Related stories

Harmonix raises $15 million in equity funding

Music developer secures money from 14 investors ahead of Rock Band 4 launch

By Matthew Handrahan

Harmonix: People felt insulted when we turned to Kickstarter

Uncoupled Kinects and Kickstarter struggles, CEO Alex Rigopulos on a strange year for Harmonix

By Matthew Handrahan

Latest comments (2)

robert troughton Managing Director, Coconut Lizard5 years ago
Shouldn't the title be $131m?

Edited 1 times. Last edit by robert troughton on 21st September 2011 9:35am

0Sign inorRegisterto rate and reply
Terence Gage Freelance writer 5 years ago
So, someone 'miscalculated' performance related bonuses by over 800%?! Surely it's tough shit if Viacom listened to such seemingly poor advice -- is there even a legal standing for reclaiming money that was paid out based on a 'miscalculation' from presumably a third party or in-house financial consultant? All sounds a bit dodgy to me.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.