Scavenger Tells Its Tale

Depending on which side you talk to, it's either a Goliath-crushing-David story or a "she done me wrong/you would've done the same thing" song the AM dial is full of.

In the first scenario, game developer Scavenger Inc. is the wee-sized David, and GT Interactive, with net sales of US$365 million for 1996 and contracts to supply software titles to Wal-Mart and Target stores across the country, the mighty Goliath.

The latter scenario finds GT claiming Scavenger slipped out the back door leaving GT empty-handed.

The facts of the matter are these: In 1996, Scavenger entered into an agreement with GT Interactive to deliver four software titles: Into the Shadows, a fantasy adventure game; 4X Frenzy, a monster truck racing game; Amok, a shooter; and Scorcher, a futuristic racer.

GT Interactive eventually released two of these titles - Scorcher and Amok - but that's where the stories of GT and Scavenger diverge.

Earlier this year, GT served notice on Scavenger that it had defaulted on its performance under the agreement the two companies had made.

"We did receive the two titles (Scorcher and Amok)," said Alan Behr, vice president of legal affairs for GT Interactive. "We got them late, but we did get them. And we published them last year. But we never received the other two games. We were supposed to get all of those titles in 1996."

Behr said he couldn't go into further specifics of the agreement between the two companies or the notice served on Scavenger, but said, "(Scavenger) didn't deliver what they contracted to deliver. And we intend to seek recompense for that. We paid money for those titles, and we never received them."

Scavenger responded to GT's notice by filing a legal action of their own: They filed a complaint in New York Supreme Court against GT, alleging breach of contract, and seeking more than $100 million from GT.

"GT owed Scavenger $2 million for over six months," said David Kingett, Scavenger's corporate communications liaison. " shipped the titles and then claimed they were faulty, after claiming how wonderful they were. GT refused to pay after claiming the titles were no good….GT shipped the titles, called them terrible, and then didn't pay a bill they owed us.

"Scavenger collapsed," Kingett said, "And so, we're suing for the value of the company. The company had 10 titles in development at the time of collapse…and so we're asking for $100 million."

Behr said, "Scavenger us for $100 million - that's comical. There's no rational basis for their claim."

The rationality - or lack thereof - of Scavenger's claims have yet to be determined.

We'll bring you further word of the situation as it develops.