While most of the gaming press was focused earlier this year on the news that the parent company of the GGL, Professional Interactive Entertainment, Inc. (or PIE), was being bought up by some random tech company called PrismOne out in Orlando, PIE was also being kept busy fighting two legal battles (that I was able to read up on) in the California courts system.
The first of these legal actions against PIE started in 2009, stemming from a breach of contract dispute with Sunrise Media Group (SMG). SMG is a business name for Shapiro Media Group, run (and presumably owned) by Jay Shapiro. The details of the suit generally follow that SMG was contracted to provide financial consulting services for a year starting in January 2008, with payment for these services due in May 2008. The breach of contract was said to occur at that point (in May) when payment was due but not delivered. SMG was awarded a default judgement of around $160,000 but this judgement was reversed on procedural grounds in April of this year. Further records on this case could not be located currently. I have reached out to Mr. Shapiro of SMG for comment on the case, also to see if this matter was still ongoing, but have not heard back at time of publication. A summary of the most recent ruling can be found here.
The latest installment of the second was in May of this year, when an appeals court affirmed the decision of a lower court to force PIE to deliver 2% of it’s outstanding stock (1,329,401 of 40,000,000 existing) to STF Equity Fund for $40,000, based on prior agreements in which STF loaned PIE around $300,000 over the course of 2001 and 2002. The arguments seemed to lie along the varying interpretations of some technical terms used in the contracts of these loans, but in the end both courts found for STF. A summary of this ruling can be found here.
(Addendum: the valuation of PIE’s stock above puts the total value of PIE at just over $1.2 million.)