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Paradox and SouthPeak resolve dispute

Tue 06 Apr 2010 8:06am GMT / 4:06am EDT / 1:06am PDT
BusinessPublishing

Publishers come to "amicable resolution" over revenue payments

SouthPeak Interactive and Paradox Interactive have settled their dispute over outstanding payments, after coming to an "amicable resolution".

The dispute flared up late last month, when Paradox accused SouthPeak of withholding revenues from videogame sales amounting to over half a million dollars.

Although Paradox terminated its distribution agreement with the company in February 2010, SouthPeak was seeking the return of unsold inventory from retailers. A move which Paradox claims would have caused irreparable harm.

As a result Paradox initiated court proceedings, although these have subsequently proven unnecessary. Instead SouthPeak has agreed to satisfy all of its payment obligations and the lawsuit has been dismissed.

"We are pleased to have reached an amicable conclusion," said Fredrik Wester, CEO of Paradox Interactive. "SouthPeak’s ability to settle this matter swiftly is a tribute to their professionalism and their sound financial integrity. We wish SouthPeak much future success."

"We are pleased to have resolved this matter quickly and to be able to move forward with a focus on continuing to grow our business," said SouthPeak chairman Terry Philips.

"As one of the fastest growing videogame publishers in North America, we value our partnering agreements and look forward to continuing our prosperous relationship with our esteemed partners to bring original, compelling content to market. We wish Paradox Interactive much future success."

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