A legal dispute between PC developer Paradox Interactive and publisher SouthPeak over a distribution deal gone sour
has been resolved, SouthPeak announced today.
SouthPeak says the two companies reached an "amicable resolution," and a settlement under the terms of which it will pay Paradox the outstanding payments at the center of the dispute.
Hearts of Iron
developer Paradox filed a lawsuit
against the My Baby
and Two Worlds
publisher last month, alleging it was owed $585,382 in unpaid revenues from the distribution of its games.
Paradox also alleged that SouthPeak was in a position to reclaim unsold Paradox games from retailers even if they could still be sold, a move by which it said it would be "irreparably harmed."
Paradox asserted at the time that SouthPeak, which reported a $2.6 million loss in its most recent fiscal quarter and recently extended its credit line to $8 million borrowed, was insolvent.
"SouthPeak has demonstrated its financial stability and both parties are delighted to have established a mutually agreeable resolution to the dispute," says SouthPeak in today's statement. "As a result, the arbitration and lawsuit will be dismissed."
Paradox CEO Fredrik Wester also commented on the settlement: "SouthPeak's ability to settle this matter swiftly is a tribute to their professionalism and their sound financial integrity," he said. "We wish SouthPeak much future success."