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Video game company settles with Beyonce after broken contract

Virginia residents may be aware that a lawsuit between the famous singer Beyonce and a video game company has ended with a settlement. The video game company had alleged that the singer had a contract with them to create a motion-based dancing game. The video game company, Gate Five, filed a lawsuit, which stated that Beyonce had requested more compensation for the video game. The higher compensation demands were stated by Gate Five to have caused one investor to pull out of the project. The lack of financing allegedly forced Gate Five to let go of 70 employees.

Gate Five was seeking $100 million in damages regarding the contract disputes and reported that it had spent $6.7 million in developing the project. The $100 million amount was based on the profit that the game was expected to make. However, Beyonce's defense was that the contract allowed her to terminate in the event that Gate Five was unable to secure financing for the project. The project financing that Gate Five was required to maintain was reported to be $5 million.

Gate Five has stated that it was about to get approved for nearly $20 million in financing when the contract was cancelled, and a judge denied a motion to dismiss by Beyonce's legal team. Gate Five reportedly investigated the possibility that Beyonce had been attempting to get a competitor to offer her a better contract. However, the lawsuit was ultimately settled between the two parties although the settlement amount was not disclosed.

Contract disputes may sometimes end up in a settlement rather than going to court. Business and commercial law attorneys may be able to help Virginia companies enforce their contracts and help them reach settlements or court judgments in the event that these contracts are broken. Companies suffering from a broken contract may sometimes initiate a lawsuit for the amount of income that they had projected they would make as the video game company did in this case.

Source: Billboard.com, "Beyonce Settles $100M Lawsuit With Video Game Company", June 18, 2013

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