Game on: Atari Slaps Zoo With $6 Million Suit

It’s on like Donkey Kong.
Atari, the video game console manufacturer, zapped Ohio game developers Zoo Publishing with a $6 million lawsuit on Wednesday for taking its money and then failing to deliver the goods.
Atari says that the company not only absconded with over $2.5 million of its money without turning over the games, but Zoo also went behind the manufacturer’s back and sold its finished product directly to the public in violation of their contract.
Zoo, which specializes in handheld Nintendo DS games popular with children, agreed in October 2008 to develop games for Atari to sell to retailers like Walmart in North America, paying the Cincinnati company $1.5 million under the agreement.
Zoo then agreed to deliver orders for their games directly to retailers on behalf of Atari. But, according to court papers, things did not go according to plan.
“Zoo never delivered any of the finished, packaged video games to the customers even though Atari advanced to Zoo the funds for manufacturing the video games subject to those orders,” Atari alleges.
At the same time, the game developer was selling its products to other retailers without cutting Atari in for its percentage.
Neither company responded to requests for comment.