Bloomberg News

THQ, Jakks Sued By World Wrestling Over Asian Sales

October 18, 2006

A joint unit of THQ Inc. (THQI:US), a maker of video games including ``Cars,'' and Jakks Pacific Inc. (JAKK:US) was sued by World Wrestling Entertainment Inc. (WWE:US) over claims the company improperly sold video games in Asia.

World Wrestling filed the lawsuit Oct. 12 in Connecticut state court against THQ Jakks LLC, a unit of THQ, based in Agoura Hills, California, and Jakks, the maker of World Wrestling action figures, Jakks spokeswoman Genna Rosenberg said today. ``The lawsuit is without merit and we intend to defend ourselves vigorously,'' THQ and Jakks said in a statement.

The lawsuit seeks damages and an order that World Wrestling, which organizes and promotes professional wrestling matches, is entitled to end its video game license with THQ Jakks, THQ and Malibu, California-based Jakks said in a statement.

THQ Jakks illegally licensed rights to Japan-based Yuke's Co. Ltd. ``to manufacture, sell and distribute our games in Japan when they have no right to do that,'' Jerry McDevitt, a lawyer representing World Wrestling, said in an interview. McDevitt said World Wrestling seeks to recoup the money THQ Jakks made from the licensing arrangement.

``Our counsel is reviewing the suit, and we have nothing further to say,'' Rosenberg said in a phone interview. The lawsuit was previously mentioned in U.S. Securities and Exchange Commission filings, the companies said.

THQ spokeswoman Liz Pieri didn't immediately return a call seeking comment. Gary Davis, a spokesman for Stamford, Connecticut-based World Wrestling, declined to immediately comment.

Shares of THQ rose 33 cents to $30.50 in Nasdaq Stock Market composite trading today.

To contact the reporters on this story: Joel Rosenblatt in San Francisco at rosenblatt@bloomberg.net.

To contact the editor responsible for this story: Patrick Oster at poster@bloomberg.net.


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Companies Mentioned

  • JAKK
    (JAKKS Pacific Inc)
    • $6.85 USD
    • 0.13
    • 1.9%
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