Super Lawyers
The top Attorneys in Virginia and
the Washington, D.C. metropolitan
area, only 5% of the attorneys
in the state are named in SuperLawyers
ATA NBTA | The National Board of Trial Advocacy Association of Trial Lawyers of America Virginia Trial Lawyers Association

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

DISCLAIMER: This website is designed to provide only general information; nothing contained herein constitutes legal advice nor is it an offer of legal representation. Use of this website is not intended in any way to create or convey the impression that such use of the website by any person, organization, or entity of any nature and/or kind constitutes any attorney-client relationship whatsoever and any information provided in this website shall not constitute legal advice. The use of any electronic communication available through this website with the Law Office of Richard L. Downey or any person associated with this website shall not constitute attorney-client relationship nor will any communication received by the Law Office of Richard L. Downey constitute an attorney-client communication. The Law Office of Richard L. Downey cannot make any guarantees as to the accuracy or currency of any information contained in or created in this website or the use of any link to another website contained in this website. The information that you obtain at this website is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice concerning your own particular situation.

*The National Board of Trial Advocacy is accredited by the American Bar Association. Currently there is no procedure in the Commonwealth of Virginia for approving certifying organizations.