If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Take-Two faces $50m lawsuit

Former member of the publisher's board of directors sues over broken oral contract

Take-Two Interactive has received a USD 50 million lawsuit in a federal court in Nevada from one of its former executives, according to GamePolitics.

Robert Alexander, formerly of Take-Two's board of directors, alleges that the publisher breached an oral contract by terminating a distribution deal with Alexander's company, Game Ballers, in 2004. Take-Two's former CEO Paul Eibeler is accused of ending the deal when he took over the position from company founder Ryan Brant.

Alexander says that Brant agreed to pay him a salary of USD 240,000 , with 20 per cent annual raises, a USD 25,000 monthly expense allowance, 50,000 shares of T2 stock and USD 0.50 per game handled by his distribution company.

In his suit, Alexander claims to have formed Game Ballers in 2003 and began negotiations with Ryan Brant and other execs to partner with the publisher. Alexander began working for Take-Two before the deal was finalised, but when legal troubles forced Brant to leave the company in 2004 the deal fell through and Alexander alleges that he was never paid what he was owed.

Author

James Lee

Contributor