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Member, Beacon International Group, Ltd.
Beyoncé is destined to appear in court after a New York appellate court ruled this week that a $100 million breach of contract suit filed against the singer can proceed.
The New York State Supreme Court Appellate Division upheld a lower court ruling in April that dismissed a motion to dismiss a suit that New York-based video game maker Gate Five L.L.C. filed against the entertainer.
According to a report, the plaintiffs contend that the singer backed out on the development of a motion-sensing dance video game due to be called “Starpower: Beyoncé” at the last minute. In the suit, Gate Five said that it had already invested some $6.7 million in the game when the singer opted to back out. Conversely, attorneys for Beyoncé argued that she had a right to void the contract with Gate Five, because the company hadn’t obtained sufficient financial commitment for the project by a certain date.
Gate Five said the failure of deal destroyed the company’s business and forced the firm to fire 70 people.