The former general counsel of game studio Gearbox (Borderlands, Aliens: Colonial Marines) and CEO Randy Pitchford are suing one another in a messy legal battle that sees both men accused of violating their legal duties to the company. The suit against Pitchford is full of sensational allegations, including the accusation that the Gearbox CEO received a secret $12 million bonus from publisher Take-Two Interactive as an advance against Borderlands profits.
"The allegations made by a disgruntled former employee are absurd, with no basis in reality or law," said a Gearbox spokesperson in a statement to Kotaku. "We look forward to addressing this meritless lawsuit in court and have no further comment at this time."
Callender's suit was filed one month after Gearbox sued him, in a separate case, for fraud and breach of fiduciary duty. Gearbox alleged that Callender borrowed money from Gearbox for a home loan and tuition that he did not pay back in full, and that Callender "abused the privilege of credit card access by charging unapproved, wholly personal expenses, including family vacations, gun club memberships and firearms accessories, and trying to get six-pack abs."
The lawsuit alleges that Pitchford struck a deal in 2016 to receive a "personal, secretive Executive Bonus 0f $12,000,000 to be paid directly to Pitchford entity called Pitchford Entertainment Media Magic, LLC. That bonus, Callender and his lawyers argue, is an advance upon royalties that would otherwise go to Gearbox's staff. This is particularly tragic exploitation, the lawsuit states, because these millions are being syphoned to Randy Pitchford's personal accounts instead of funding the development of Borderlands.
Callender's most lurid allegation against Pitchford is an accusation surrounding an event that he says occurred in 2014. Callender says that Pitchford left a USB drive in a Dallas, Texas restaurant containing sensitive corporate documents for Gearbox and its partners including 2K Games, Sega, Sony, Microsoft, and others. Says the lawsuit: "Upon information and belief, Randy Pitchford's USB drive also contained Randy Pitchford's personal collection of 'underage' pornography."
Callender also accuses Pitchford of holding parties in which "adult men have reportedly exposed themselves to minors, to the amusement of Randy Pitchford."
