Atari updates status on lawsuits

SEC filing brings investors up to speed on company's legal proceedings--win, lose, or settle.

Despite having announced its quarterly results two weeks ago, Atari didn't get around to filing them with the Securities and Exchange Commission until this week. The important numbers were the same, but the filing did contain some new status updates on the company's ongoing legal proceedings.

Last June, a judge said that Atari was entitled to more than $6 million (plus a $150 filing fee) from Games, Inc., Roger W. Ach, II, and Chicago West Pullman, in a suit the publisher filed after a development deal between Atari and Games turned sour. Atari hadn't seen a dime of that money as of December 31, 2005, but earlier this month, the ruling was backed up by a Court of Appeals. The publisher said it is "investigating further options with respect to our collection efforts."

Atari received a better sense of closure in a suit brought against it by Martin Lee Edmondson, the former managing director of Driver-developer Reflections Studio. Edmondson resigned in December of 2004, but the Reflections founder and creator of the Driver franchise filed suit the following March for "constructive unfair dismissal" after an alleged breach of contract. Edmondson had sought an unspecified amount in damages for the dismissal, and Atari settled the matter with a likewise unspecified settlement payment in August.

The publisher also said that it has settled with American Video Graphics to excuse itself from a patent infringement lawsuit that company brought against a host of game-industry players. Atari will pay the company $300,000 and retain the right to sell products that use its patents.

Atari also acknowledged a lawsuit brought against it in August of 2005 by developer Indigo Moon. The developer alleges that it shared information with Hasbro Interactive (now known as Atari Interactive) to work on a possible computerized version of Clue but never received payment for its work. Indigo Moon also claims that its work was used years later in the Clue FX and Clue Mysteries board games. That suit has yet to be resolved.

For more on Atari's literal and figurative trials and tribulations, check out GameSpot's previous coverage.

Written By

Want the latest news about DRIV3R?

DRIV3R

DRIV3R

Follow

Discussion

24 comments
LexLas
LexLas

That's terrible. It's like and X-wife they just keep taking and taking till your left with nothing and then maybe just maybe they will back off.

frankeyser
frankeyser

if they dissappear... i wont even notice... i own very few games that have anything to do with them since 1983... i have a few games that were published by them in the states.. but i could have had them imported anyway or another company probably would ahve published them here... so long and thanks for all the fish atari

smo_doggy
smo_doggy

The thing i cant understand is how can Info/Atari be in so much trouble when its games are such big sellers? I mean Dragonball Z alone has shifted a copy or two.

MC_Hammerty
MC_Hammerty

Now they have a lot banking on TimeShift to pull them out.

Greatgone12
Greatgone12

Atari's quality has gone down. Though they're not the same company, they truly only publish any decent games... Though that's sad, a large company going down just like that....

playwrite
playwrite

look. atari was never a good company. they are just important. the most important thing they did was bring out pong in the arcades and that was stolen.

mariokart64fan
mariokart64fan

no they arent driver is great too bad ppl are to worried about gta lol get over it already gta reuses the same city and graphics engine let alone cars so why bother if you dont own gta yet get sa it offers more but the lcs on the psp - just another port of gta3

Paul_TheGreat
Paul_TheGreat

Another crappy developer is about to go down.

i_love_my_ds
i_love_my_ds

i dont really care for them because atari is a pretty crappy company anyways.

secily
secily

atari needs to retire gracefully

ty___
ty___

uhhh, why is everyone like "ATARI FROM BACK IN THE DAY", and someone mentioned their fight with intellivision.. isn't Atari just Infogrames with a more marketable name? I don't believe it's the same Nolan Bushnell company. correct me if I'm wrong.

valdarez
valdarez

That's a lot of lawsuits, makes you wonder what's going on over at Infrogames... oh, I mean 'Atari'. Just keep in mind that this is not the Atari you grew up adoring as a child. It's another company that has nothing to do with the original, other than they purchased the rights to the name.

KiLLer_ba
KiLLer_ba

Games, Inc pay Atari already. Atari if you use Indigo Moon Clue ideas then pay them, use the 6 million your getting from Game Inc

gameloverx
gameloverx

I agree blackice.Joe but still Atari has seen thick and thin with lawsuits but hey at least the DBZ games are selling good too bad i don't care about DBZ

cusoker
cusoker

ok, so they have a little legal trouble right now, its not like the company is folding and imploding right now. every company goes through difficult stretches

Smoke2Much
Smoke2Much

That really sucks! I feel bad for them and all their troubles!

Lauryn2000
Lauryn2000

Atari has been on the other end when it was fighting with Intellivision back in 1983-1984.Seems like they've come full circle,someone has a lawsuit against them.

stovich
stovich

Why the heck are you people so anxious to push them into a hole & cover it up? This isn't all doom and gloom. Atari's just ironing out all their legal woes. Good for them. Now if Games, Inc. would get off their collective asses and pay Atari, they can concentrate their efforts on wrapping up their case with Idigo Moon. Although with the "years later" thrown in, it doesn't look like an absolution is in near sight.

Orasion_Seiz
Orasion_Seiz

yeah they use to be a good company well thats how life is.

blackIceJoe
blackIceJoe

THat stinks I feel real bad for Atari it was a good company it will be sad to see it go.Its to bad they have not gotten the 6 mill it could have helped them.