Beyonce Walks Away from Dance Video Game, Denied Second Try to Escape $100 Million Lawsuit

In May, Justice Charles Ramos made a decision that Gate Five, a  video game developer, could proceed forward with a lawsuit against pop superstar Beyonce.  The company claimed that Beyonce backed out of a deal worth $20 million just three days before the contract was to be signed on a game called “Starpower:  Beyonce.”  Judge Ramos said at the time that Beyonce should have given Gate Five notice of her decision.

News reports released recently say that there is a good chance that Beyonce will appear in a New York court soon after her halftime Super Bowl performance on February 3rd.  Gate Five alleges that Beyonce pulled out of the deal in December of 2010 on a Christmas Eve “whim.”  The video game was to be a motion-sensing dance game.  According to the lawsuit, the video game developer is asking for hundreds of millions in damages, what Game Five would have likely made if Beyonce had honored the agreement.

Beyonce’s motion for a summary judgment was denied last spring.  The superstar filed the motion which was based on the belief that because Gate Five had not yet obtained the $5 million financing commitment, she had grounds to cancel the contract.  The judge did not agree.  A New York appellate court agreed with the lower court’s order when Beyonce requested a second opinion on Thursday, November 8th.

Beyonce and Gate Five signed a contract which contained a termination clause stating that the singer could back out of the deal if certain financing was not acquired by a specific date.  According to Gate Five, the company had a financier in the wings ready to provide financing of $19.2 million and had already spent $6.7 million on the project when Beyonce terminated the deal.  The developer claims that prior to terminating, Beyonce demanded a new compensation package; the company also began investigating whether the singer may have stopped the deal so that she could sign on with Ubisoft or Electronic Arts, other big names in the video game industry.

Now it will be up to a jury to determine whether Beyonce honored her contract after evidence is presented early next year.

Spotora & Associates are trusted Los Angeles entertainment lawyers offering exceptional legal counsel to clients in need of strong, aggressive legal guidance and representation.  Our areas of expertise include all types of contracts, agreements, trademarks, and other matters in the film, television, music, publishing and video industries.

This entry was posted on Friday, November 16th, 2012 at 1:09 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.