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Viacom wants $131m refund from Harmonix stockholders

Wed 21 Sep 2011 8:06am GMT / 4:06am EDT / 1:06am PDT
LegalPublishing

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.

2 Comments

robert troughton
Managing Director

216 84 0.4
Shouldn't the title be $131m?

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

Posted:2 years ago

#1

Terence Gage
Freelance writer

1,288 120 0.1
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.

Posted:2 years ago

#2

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