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Home News Bank Sues Konami For Millions For Def Jam Rapstar Loan

GAMING NEWS

Bank Sues Konami For Millions For Def Jam Rapstar Loan

Posted on Thursday, May 24 @ 09:12:23 Eastern by Keri_Honea


Uh-oh...looks like someone hasn't been paying their bills! That someone is Konami, who borrowed $14 million from City National Bank (CNB) to publish Autumn Games' Def Jam Rapstar. We know what happens when banks don't get their monies, don't we? They either foreclose on your house or sue your ass, and CNB chose to do what they had rights to: the latter.

CNB claims that Konami said they would repay the loan from game sale revenues, and apparently that hasn't happened. Konami, according to the bank, claims that they are not required to repay the loan from the game's profits.

Straight from the petition's mouth, it reads: "Rather than paying game-related proceeds directly to CNB as agreed, defendant have kept all game-related proceeds for themselves and have refused to remit any such proceeds to CNB." CNB also alleges that Konami made "unrealistic predictions" by saying Def Jam Rapstar would sell 2.5 million copies in its first year. (Excuse me while I go laugh loudly in a corner.)

CNB is seeking over $8.9 million in damages, but the petition isn't clear if this is in addition to the amount due on the loan or the total amount they are seeking. I assume it's the former.

[Source]
Related Games:   Def Jam Rapstar
Tags:   Konami


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Comments
  • StringerBell86
    StringerBell86
    Joined: Mar 2012
    Posted: May 24th, 2012 at 10:06 am
    My prediction is that either Konami motions for summary judgment, being that it's simple contractual law and this particular stipulation in the contract seems pretty clear (banks have no excuse to argue that they didn't know what they were signing)...

    OR the banks attorney makes a decent argument that Konami's financial pro formas (prediction of 2.5 million units LOL) was based on shoddy, inaccurate market research. Plenty of case law to use as precedence there. Then it would most likely settle out of court for a reduced amount. Complete nullification of the loan terms probably won't happen.
    0 0
  • tinymhg
    tinymhg
    Joined: Jun 2011
    Posted: May 24th, 2012 at 11:27 am
    "... Def Jam Rapstar would sell 2.5 million copies in its first year. (Excuse me while I go laugh loudly in a corner.)"

    Sorry but it just needed to be said again.
    0 0
  • De-Ting
    De-Ting
    Joined: Nov 2006
    Posted: May 24th, 2012 at 2:31 pm
    Sorry, but "Rapstar" makes me want to...figuratively, punch someone in the face.
    0 0
  • tinymhg
    tinymhg
    Joined: Jun 2011
    Posted: May 24th, 2012 at 5:51 pm
    Maybe the bank will pay you.
    0 0
  • Chunibrow
    Chunibrow
    Joined: Mar 2010
    Posted: May 24th, 2012 at 10:42 pm
    Speaking of Rapstar, KFC has a Wrapstar which is chicken bacon cheese lettuce mayo and BBQ sauce. This is the one I prefer.
    0 1

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