News: Vivendi Sue Interplay

Vivendi Universal has sued Interplay over their distribution deal.

LOS ANGELES, Sept 25 (Reuters) - Vivendi Universal's (nyse: V - news - people) video game arm has sued one-time partner Interplay Entertainment Corp. , alleging Interplay breached a distribution deal between the two.

The suit, filed Tuesday in Los Angeles Superior Court, accused Interplay, which is controlled by French publisher Titus Interactive , of trying to get out of a product distribution deal by making claims of unpaid payments under the pact.

An Interplay spokesman was not immediately available for comment.

According to the suit, on Aug. 6 and 7, Interplay sent letters to VU Games claiming VUG was in breach of a distribution agreement between the two from August 2002. Those letters, VUG said, claimed it had withheld payments from Interplay and improperly deducted from a reserve fund.

VUG said it sent letters denying those claims, but on Sept. 16, it said, Interplay sent a letter terminating the agreement.

The suit asks for a determination of each side's obligations under the distribution deal, damages, interest and an injunction preventing Interplay from gaining another distribution deal with a different company.

Copyright 2003, Reuters News Service


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