The suit mentions several charges of racketeering, bribery, and extortion under various state laws. WWE is seeking treble, punitive, and other damages, as well as a declaration that the video-game license with the joint venture of Jakks and THQ, are therefore void and unenforceable.
The federal lawsuit filed by WWE against Jakks and the other defendants relates to a series of payments made in 1998 to Shenker's foreign bank account by two foreign subsidiaries of Jakks. It has discovered that the payments were then split with Bell by Shenker. Two of the payments occurred during the time that WWE was in the process of selecting a licensee for video games featuring WWE talent. One of the payments was made on the same day that SSAI and Bell recommended Jakks, while a third payment was made after the video-game license was awarded to Jakks and THQ.
Linda McMahon, the Chief Executive Officer of WWE, stated: "We very much regret having to take this action today, but regret even more the facts and circumstances which have compelled us to do so. WWE's intellectual property is a valuable asset of the Company, and we believe the actions taken today are necessary to preserve the integrity of our licensing process and essential to ensure that WWE receives appropriate and fair compensation for the grant of a license to use our intellectual property."JAKKS denies any allegations of wrongdoing, believes that it will be completely vindicated in the litigation, and looks forward to having the claims against it dismissed. It will continue to devote its full energies and resources to bringing its products to market during the busy holiday season and beyond.
THQ sent out a press release to comment on the unfolding events :
THQ is committed to preserving its rights under the video-game license with the WWE. THQ believes the WWE is pleased with the manner in which THQ has managed their brand in the video-game category. 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. In any event, either there is no basis for terminating the video-game license, or THQ expects to be made whole by those whose conduct is eventually found to be unlawful. THQ intends to vigorously protect and pursue its rights, if necessary.According to THQ the lawsuit will have no effect on its current release schedule, and WWE SmackDown! vs. Raw is still on track for its November 2 ship date.
