Beyoncé Sued by Video Game Developer

Company claims their business collapsed when she pulled out of deal

April 27, 2011 8:50 AM ET
Beyoncé Sued by Video Game Developer
Marc Piasecki/FilmMagic

Beyoncé is being sued by the software developer Gate Five for allegedly pulling out of a deal to create Starpower: Beyoncé, a motion-sensing dance video game. The company is seeking more than $100 million for what they say in a summons obtained by New York Magazine was "a bad faith breach of contract so callous that, on what appeared to be a whim, she destroyed Gate Five's business and drove 70 people into unemployment, the week before Christmas."

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According to Gate Five, the singer "had already negotiated lavish compensation terms to which she was contractually bound," but made an "extortionate demand for entirely new compensation terms" at a pivotal moment in the development of the game. The summons claims that Beyoncé's actions toward the company were so unscrupulous that they were renounced by her father Mathew Knowles, her manager at the time. Beyoncé dropped Knowles as her manager last month.

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