Randy Pitchford, head of Gearbox Software, has been accused of illicitly moving $12 Million in payments made by publisher 2K Games for the development of Borderlands 3 over to his own personal company. But why is the story much more complicated than that?
What were the payments for and why is it important?
Of what significance is Gearbox's own approval of the transfer?
How does Mr. Pitchford's control of the company complicate the question?
How can such "interested party" transactions be "cleansed" of impropriety under Texas limited liability company law?
And why does perhaps none of that matter, if what we're talking about is perceived by so many as unethical?
You won't believe your eyes, in...Virtual Legality.
#Pitchford #Gearbox #VirtualLegality
Discussed in this episode:
"Former Gearbox employee provides proof Randy Pitchford diverted funds to personal company"
GameDailyBiz - June 18, 2019 - Mike Futter
Callender v Gearbox and Pitchford
Plaintiff's Third Amended Petition
Cause No. DC-18-19179
(NO ONLINE CITATION)
Texas Comptroller Public Information Report
Gearbox Software, L.L.C.
2017 Texas Statutes
BUSINESS ORGANIZATIONS CODE
TITLE 3 - LIMITED LIABILITY COMPANIES
CHAPTER 101 - LIMITED LIABILITY COMPANIES
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"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
Rick has practiced for more than a decade at some of the country's largest law firms, representing IT, software, video game, and other technology companies, as well as the individuals and institutions which fund them.
DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.
Any and all feedback is appreciated. Let us know what you think!
Blog, "Rules of the Game", at https://hoeglaw.wordpress.com/
On "Help Us Out Hoeg!" a regular segment on the Easy Allies Podcast (formerly GameTrailers)
The Hoeg Law Firm is a business law firm with big law experience and a small firm approach focusing on start-ups, technology, financing, and everything else a business might need.