WWE Sues Jakks and THQ For Bribery in Licensing
- October 20, 2004 11:38 AM PST
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Lawsuit accuses top execs from Jakks of getting the WWE license through bribery.
WWE has filed a lawsuit against THQ and Jakks Pacific, alleging that the video game licenses held by the two companies were obtained through a "commercial bribery scheme."The wrestling entertainment group alleges that former WWE senior vice president of licensing and merchandising James Bell, now one of Jakks' top executives, took over $100,000 in bribes from Jakks for the video game license, which was ultimately rewarded to Jakks in partnership with THQ.
Bell purportedly hid "clearly superior" proposals from Activision and THQ from WWE senior management (while working there), and advised Jakks to enhance its own offer. Jakks, not having a video games division, then parternered with THQ to make games--which continue to generate significant revenue for the companies to this day.
WWE seeks to nullify the license, and has alleged 14 different counts of racketeering, bribery, money-laundering. The defendants named in the suit are Jakks Pacific, Inc.; THQ, Inc.; former WWE licensing agent Stanley Shenker & Associates, Inc. (SSAI); Bell Licensing, LLC; highest-ranking Jakks executives Jack Friedman, Stephen Berman, and Joel Bennett; Stanley Shenker; and former WWE senior vice president of licensing and merchandising James Bell.
It is plausible that THQ was in the dark about Jakks' alleged under-the-table dealing, and the company issued an official statement denying any wrongdoing.
"THQ believes that WWE is pleased with the manner in which THQ has managed their brand in the video game category," the statement read. "As THQ is not directly accused of any wrongdoing in the complaint--rather the complaint alleges wrongdoing on the part of Jakks Pacific and others of which THQ was and is unaware--THQ is not in a position to comment on these allegations."
If THQ didn't know of Jakks' dealings, the publisher may strike back with a lawsuit of its own against WWE, seeking damages and an exclusive licensing deal for itself.
