THQ sues EA over "inside information leak"


Well-Known Member
Sep 25, 2013
Wii U
Honestly, I would not put it past EA to do something like this. If this is true, this is horrible business practice. And, again, it honestly sounds like something EA would do.

THQ sues EA, UFC: EA fed inside info to UFC owner, THQ says

THQ has sued EA and UFC parent company Zuffa, claiming EA intentionally damaged THQ's relationship with Zuffa to broker a deal of its own for the UFC license. THQ claims EA used inside knowledge about its financial situation to commit "tortious interference" with its contract, and THQ is seeking to recover the value of the UFC property, the profits of the UFC franchise and at least $10 million in damages from EA. The suit also aims to disallow Zuffa's bankruptcy claims against THQ.

In early December 2011, EA considered buying THQ outright and the two companies entered negotiations, according to THQ's suit filed with the Delaware district court. THQ says it provided EA with detailed financial information, including revenue and projected stats on its UFC franchise. On December 12, 2011, EA walked away from the potential buyout, and on December 30, 2011, Zuffa sent THQ a Demand Letter expressing the intent to terminate the UFC license.

Though the UFC franchise was worth $20 million, THQ settled with Zuffa for $10 million. EAsnagged the UFC license in 2012. EA Sports UFC is due out in 2014 for Xbox 360 and PS4.

On December 19, 2012, THQ filed for bankruptcy. Looking back, THQ puts the pieces together as follows:

"Prior to the Demand Letter, EA contacted Zuffa, informed Zuffa of THQ's perilous financial condition and expressed interest in acquiring the UFC franchise directly from Zuffa, causing Zuffa to threaten termination of the UFC license."

An EA spokesperson tells Polygon, "We believe these claims are without merit."

Obviously, I wasn't there, so I don't know for sure. And either way, it's no surprise that EA would deny this. However, again, just knowing EA and their ways, this sounds like something that they would do. I would not put it past EA to do something like this. And, if this happens to be true, I hope THQ wins a lot out of this.

What are your thoughts about this. I'll try and keep up with this, so that I can keep you all informed of what happens. In the meantime, what do you think about this. Is EA at fault here for "insider information". Something that is even illegal on Wall Street. Or, is THQ just throwing wild accusations as a way to make money to pay their debts.

I can't say for sure, either way. Maybe it's a stretch, and THQ is just trying to pay their debts anyway they can make money. But, then again, as I've already said, I wouldn't put it past EA to do something like this.
This is a plain old torts claim, different from insider trading, which is a violation of federal securities laws.

THQ is a ghost at this point, so there's no point in taking sides, but it's not unlikely at all that EA leveraged what it knew about THQ to get the deal.

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