SouthPeak, Paradox Resolve Distribution Dispute

A legal dispute between PC developer Paradox Interactive and publisher SouthPeak over a distribution deal gone sour has been resolved, SouthPeak announced today. SouthPeak says the two companies reached an "amicable resolution," and a settlement under the terms of which it will pay Paradox the outstanding payments at the center of the dispute. Hearts of Iron developer Paradox filed a lawsuit against the My Baby and Two Worlds publisher last month, alleging it was owed $585,382 in unpaid revenues from the distribution of its games. Paradox also alleged that SouthPeak was in a position to reclaim unsold Paradox games from retailers even if they could still be sold, a move by which it said it would be "irreparably harmed." Paradox asserted at the time that SouthPeak, which reported a $2.6 million loss in its most recent fiscal quarter and recently extended its credit line to $8 million borrowed, was insolvent. "SouthPeak has demonstrated its financial stability and both parties are delighted to have established a mutually agreeable resolution to the dispute," says SouthPeak in today's statement. "As a result, the arbitration and lawsuit will be dismissed." Paradox CEO Fredrik Wester also commented on the settlement: "SouthPeak’s ability to settle this matter swiftly is a tribute to their professionalism and their sound financial integrity," he said. "We wish SouthPeak much future success."