14 DAY TRIAL // City National Bank accuses developer Autumn Games and publisher Konami of lying in order to get access to a loan that allowed them to create and their distribute their game, Def Jam Rapstar.
The game is already subject of one lawsuit, from record label EMI saying that 4mm Games and Terminal Reality have used a number of songs without paying in order to secure the rights to them.
The complaint says that, “CNB has recently learned that defendants' representations concerning financial conditions and repayment of the loan - both before and after the loan was approved - were false at the time they were made and that defendants never had any intention of repaying the loan as promised.”
It adds, “By the time CNB learned the true state of affairs, Autumn had drawn down $13,987,003.15 of the $15 million line of credit. To date, defendants still have not paid CNB a single penny of the principal amount that is due, and they continue to insist that none of the proceeds from sales of the game are owed to CNB and/or available for repayment.”
City National Bank is aiming to get damages for fraud, breach of contract, breach of good faith and fair dealing, unjust enrichment and other offences.